After vacuuming around $42 billion over the past 12-months, it’s been a good year for managers of bond ETFs.
The credit market is slowly returning to some semblances of normal, which has rebuilt confidence. Several bond managers have added bond ETFs to fill gaps in their product lineup.
BlackRock introduced the iShares 10+ Year Credit Bond Fund (CLY) and the iShares 10+ Year Government/Credit Bond Fund (GLJ).
CLY tracks the BofA Merrill Lynch 10+ Year US Corporate & Yankees Index, which is designed to measure the performance of the long-term, investment-grade U.S. corporate and Yankee bond markets. Component securities include debt issued publicly by U.S. corporations and U.S. dollar-denominated, publicly-issued debt of non-U.S. corporations, foreign governments and supranational agencies.
GLJ follows the BofA Merrill Lynch 10+ Year US Corporate & Government Index. It’s tied to the performance of the long-term, investment-grade U.S. corporate and government bond markets. Bonds inside the fund include publicly-issued U.S. Treasury debt, U.S. government agency debt, debt issued by U.S. and non-U.S. corporations, foreign government debt and supranational debt.