At the beginning of this year, Barclays Global Advisors was the only investment management company with a bond exchange-traded fund, the Financial Times reports. Today, however, there are nearly two dozen fixed-income ETFs from the likes of State Street and Vanguard, with more on the way from Bear Stearns and Ameristock.
“The income space is ripe for ETF innovation,” said P. Michael Jones, chief investment officer at Wachovia Securities. “And it’s not just narrowed down to bonds. To the extend that we can create income-oriented solutions that are lower cost, they will take off like a rocket.”