The company filled a hole in its fixed-income ETF line — but the timing may not be ideal, given relatively low yields in junk bonds relative to Treasurys, one observer said.
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The iShares 20+ Year Treasury Bond ETF (TLT) took in $1.3 billion in inflows this past week.
Unlike similar mutual fund products at Vanguard, two passive tax-exempt bond ETFs don’t have a high minimum for fees of 9 basis points.
Advisors know exchange-traded funds as a way to invest in broad market indexes, but they are great for bond management, too.
With the Fed primed to begin the next cutting cycle, advisors are looking for fresh places to park clients’ cash.