With interest rates hovering around the zero line, ETF providers are scrambling to bring additional products on the market to satisfy the income needs of the investing public, as reported by Barron’s:
Funky niche ETFs might be annoying to some. But State Street’s (STT) Global Advisors group today brought to market a fund which could actually clean out much of the clutter in a rather expansive ETF marketplace.
Enter the SPDR Barclays Capital Issuer Scored Corporate Bond ETF (CBND). Instead of picking and ranking its components by who’s the biggest (which, in this environment can be akin to who’s in the worst shape), CBND selects its issues based on fundamentals. Those include metrics such as return on assets, interest coverage and measures related to a company’s ability to fund short-term obligations.




