MutualFundWire.com: Bond ETFs are Thrown Off Track
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Friday, September 26, 2008

Bond ETFs are Thrown Off Track


The trouble in the bond markets is causing problems for bond ETFs. In Friday's WSJ Wall Street Journal Fund Track, Ian Salisbury reports that bond ETFs are seeing their tracking errors increase exponentially. The increase could cause issues for the companies that run the funds as many highlight the precision with which their funds track an index in advertising campaigns. With the increased tracking error, some bond ETFs now more closely resemble closed-end funds which often trade at a discount to their NAV.


Printed from: MFWire.com/story.asp?s=19450

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