Advisers Favour Bond ETFs

LOW COST FUNDS: Corporate bond funds were the most popular ETFs among advisers in the three months to the end of 2013

Emma Wall 28 February, 2014 | 5:11PM

Investors are hungering for developed market equities – but their financial advisers are snapping up corporate bond ETFs on their behalf.

While investors are attracted to the returns of the S&P 500 and the FTSE 100 – which reached a 14 year high this week – investment professionals know the importance of diversification.

Exchange traded fund provider iShares revealed that corporate bonds were the most popular type of ETFs among financial advisers in the last quarter of 2013. iShares corporate bond ETFs saw inflows of £59 million in the three months to the end of last year. The iShares Corporate  Bond 1-5yr UCITS ETF (IE15) was the most popular, selling £39 million.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
iShares € Corp Bond 1-5yr ETF EUR Dist111.78 EUR0.07
iShares Euro Total Mkt Val Lg ETF € Dist GBP  
iShares UK Dividend ETF GBP Dist725.69 GBX-0.28
Verizon Communications Inc57.49 USD-0.19

About Author

Emma Wall  is former Senior International Editor for Morningstar

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