网爆吃瓜 lending gives iShares ETF the edge
24 March 2017 Chicago
Image: Shutterstock
Revenue generated from the securities lending programme of the iShares ETF has allowed it to be one of US investment research firm Morningstar鈥檚 鈥渉ighly rated exchange-traded funds (ETF)鈥�.
The ETF, which tracks the Bloomberg Barclays Euro Government Inflation Bond Index, is physically replicated and levies a slightly higher ongoing charge of 0.25 percent.
In a research note on the effect of rising EU inflation on ETFs, Morningstar said: 鈥淎t first sight, the fee looks a bit toppy.鈥�
鈥淗owever, its tracking difference has routinely come in below the ongoing charge, partly thanks to revenues generated by securities lending.鈥�
The iShares ETF lent out an average of 28 percent of its assets for a net return to the fund of 4 basis points last year.
The research firm noted that 鈥渋nflation in the eurozone has spiked markedly in the space of a few months鈥�, which adds to the attractiveness of ETFs and traditional index funds that can provide exposure to the market of eurozone inflation-linked bonds.
The ETF, which tracks the Bloomberg Barclays Euro Government Inflation Bond Index, is physically replicated and levies a slightly higher ongoing charge of 0.25 percent.
In a research note on the effect of rising EU inflation on ETFs, Morningstar said: 鈥淎t first sight, the fee looks a bit toppy.鈥�
鈥淗owever, its tracking difference has routinely come in below the ongoing charge, partly thanks to revenues generated by securities lending.鈥�
The iShares ETF lent out an average of 28 percent of its assets for a net return to the fund of 4 basis points last year.
The research firm noted that 鈥渋nflation in the eurozone has spiked markedly in the space of a few months鈥�, which adds to the attractiveness of ETFs and traditional index funds that can provide exposure to the market of eurozone inflation-linked bonds.
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