ETF Expert

Vanguard aims to take market share away from the debt “dominators” at State Street and PowerShares (Invesco). Specifically, State Street has had SPDR Barclays International Treasury Fund (BWX) available to ETF enthusiasts for quite some time, whereas PowerShares Sovereign Emerging Market Debt (PCY) has also been a staple of the ETF bond fund world.

Naturally, Vanguard aims to compete with these dollar-denominated Bond ETFs on cost. Vanguard ’s Total International Bond Fund ETF will charge an expense ratio of just 0.3%. Meanwhile, Vanguard’s Emerging Market Bond fund will go for a mere 0.35%.

The fact that these Bond ETFs will be denominated in U.S. dollars, however, could be a double-edged sword. Many believe that the U.S. dolar is in long-term decline. For that reason, WisdomTree served up local debt funds like Asian Local Debt (ALD) and Emerging Market Local Debt (ELD); investors might profit from appreciation against the greenback in addition to collecting a rewarding stream of income.

Of course, during a financial crisis, the almighty buck has not lost its safe haven appeal. In that manner, Vanguard, State Street and PowerShares aim to avoid the risks associated with fluctuating currencies.

Vanguard (Finally) Moves Into International Bond Funds & ETFs – Murray Coleman, Barron’s
5 Small-Cap ETFs That Can Jump 10% Or More This Year – Jason Raznick, Forbes
WisdomTree Introduces Australia And New Zealand Local-Currency Bond ETF – Patricia Oey, Morningstar
Brent And WTI Crude Oil: How To Trade A Narrowing Spread – Richard Bloch, Seeking Alpha
Volatility ETFs Crater In Oct. As Market Roars Back – Trang Ho, Investor’s Business Daily  

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Disclosure Statement: ETF Expert is a web log (”blog”) that makes the world of ETFseasier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.

Tags | Currency Bond ETF, Oil ETFs, Small Cap ETFs, Volatility ETFs