New products introduced over the last week include a new high-yield bond ETF from Proshares and a partnership between Smarsh and NASDAQ OMX to offer offer Smarsh archiving and compliance solutions on the SMARTS platform.
In addition, S&P Capital IQ announced that it is expanding its ETF research offerings.
Here are the latest developments of interest to advisors:
1) ProShares Launches New High-Yield Bond ETF
ProShares announced Thursday the launch of ProShares High Yield-Interest Rate Hedged (HYHG), a new high-yield bond ETF that uses Treasury futures to provide a built-in hedge against rising interest rates.
HYHG maintains short positions in 2-, 5- and 10-year U.S. Treasury futures contracts to hedge its portfolio against possible rate increases.
It seeks to track the performance of the Citi High Yield (Treasury Rate-Hedged) Index, which aims to provide diversified exposure to a liquid portfolio of high-yield bonds while seeking to mitigate the impact of interest rate movements.
To be included in the index, bonds must have a minimum issue size of $1 billion, be issued within the past five years and have at least one year remaining until maturity. No more than two issues from one issuer are allowed, and no more than 2% of the index is allocated to a single issuer.
(The index does not attempt to mitigate other factors influencing the price of high-yield bonds, such as credit risk, which may have a greater impact on high-yield bond prices than changes in interest rates.)
2) NASDAQ OMX and Smarsh Establish Partnership