Barclays Global Investors
is targeting fixed income investors with its next two exchange-traded funds. The pair of ETFs will invest in Treasury Inflation Protected Securities (TIPS) and the Lehman Aggregate index, according to a report carried by Dow Jones Newswires
The two new funds are the iShares Lehman U.S. Treasury Inflation Protected Securities (TIPS) and the iShares U.S. Aggregate Bond Fund.
The two ETFs will be traded on the American Stock Exchange and are scheduled for a fourth quarter 2003 launch. Both funds will be managed to match bond indexes from Lehman Brothers. Both funds will also carry an expense ratio of just 20 basis points.
Barclays currently offers just four fixed income iShares products with $4.4 billion of assets among its family of 77 ETFs. Even with that small number it is seen as the leader in the niche. The firm expects that the primary demand for the funds will come from retail investors.
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