An ETF industry titan recently rolled out a smart beta bond fund.
| Andrew Ang|
Head of Factor Investing Strategies
Last Thursday, Karen Schenone
, head of U.S. fixed income strategy at iShares
, and Andrew Ang
, head of factor investing strategies at BlackRock
] (iShares' parent), unveiled
the new iShares USD Bond Factor ETF
. The fund debuted
on October 12 and uses the USBF ticker on the Nasdaq.
BlackRock Fund Advisors serves as the new fund's investment advisor. James Mauro
and Scott Radell
PM the fund, which tracks the BlackRock USD Bond Factor Index
. The fund's expense ratio is 18 basis points.
Schenone puts the launch in the context of "historically low yields" and notes that the index that the new fund tracks "systematically looks at all types of bonds."
"USBF's investment strategy harvests the value factor to identify underpriced securities, while using the quality factor to uncover the investment grade and high-yield corporate bonds that exhibit lower probabilities of default," Ang states.
Other service providers on the new fund included: BlackRock Index Services, LLC as index provider; BlackRock Institutional Trust Company, N.A. (BTC) as securities lending agent; BlackRock Investments, LLC as distributor; PricewaterhouseCoopers LLP
as independent accounting firm; State Street Bank and Trust Company
as administrator, custodian, and transfer agent; and Willkie Farr & Gallagher LLP
Stay ahead of the news ... Sign up for our email alerts now