An Analysis of the Growth in the Fixed Income ETF Market
- *Corresponding Author:
- Nathan Mauck
Assistant Professor of Finance
University of Missouri – Kansas City
235 Bloch, 5110 Cherry Street
Kansas City, MO 64110, USA
Tel: (816) 235-6113
E-mail: [email protected]
Received Date: August 14, 2014; Accepted Date: September 22, 2014; Published Date: September 29, 2014
Citation: Clark J, Mauc kN (2014) An Analysis of the Growth in the Fixed Income ETF Market. J Stock Forex Trad 3:130. doi: 10.4172/2168-9458.1000130
Copyright: © 2014 Clark J, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Since the financial crisis, demand for fixed income ETFs has increased dramatically. An analysis of this market shows that most of the growth has occurred in ETFs covering U.S. Corporate Bonds, Global Bonds and Emerging Market Bonds. This rapid growth suggests that institutional investors have begun to use fixed income ETFs to achieve both strategic and tactical asset allocation goals. Changes in fixed income ETF volume are positively related to changes in the VIX, which suggests that investors are using fixed income ETFs to tactically shift into fixed income when the stock market becomes more volatile.