The Securities and Exchange Commission has taken action to authorize the industry's first fixed-income exchange-traded funds (ETFs). Until now, ETFs have been based only on equity indexes. Pending completion of the registration process, the new ETFs are expected to be launched in late July.
The seven new fixed income ETFs were registered by Barclays Global Fund Advisors, a subsidiary of Barclays Global Investors (BGI). The new iShares, which is what Barclays calls its ETFs, will be listed on the American Stock Exchange.