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ProShares launches S&P 500 Bond ETF


ProShares, with USD30 billion under management, has launched the first S&P 500 Bond ETF. The ProShares S&P 500 Bond ETF (NYSE:SPXB) tracks the S&P 500/MarketAxess Investment Grade Corporate Bond Index.

“The S&P 500 served as the basis for the first ETF over 25 years ago. Today’s launch of a bond ETF tied to the S&P 500 is another important moment in the evolution of ETFs,” says Michael Sapir, co-founder and CEO of ProShare Advisors, LLC, the advisor to ProShares. “We believe SPXB will be an attractive option to investors considering bond ETFs. SPXB offers the most liquid, high quality bonds issued by companies in the S&P 500, the widely known and most-used securities benchmark.”
 
Broad market trends have been supporting a shift toward bond ETFs. While allocations to mutual funds and individual bonds remain high, trends like investors’ demand for transparency, advisors’ need for scalability and efficiency, and a general fee consciousness have contributed to a 10-year compound annual growth rate of 31 per cent in bond ETF assets. SPXB is well positioned to help investors embrace the shift from individual bonds and mutual funds to bond ETFs.
 
“The S&P 500/MarketAxess Investment Grade Corporate Bond Index is a new way to measure the U.S. investment grade corporate bond market,” says Jason Giordano, Director, Fixed Income Product Management at S&P Dow Jones Indices. “The companies represented in the index, constituents from the iconic S&P 500, are typically well capitalised and their bonds historically trade more frequently than the broader U.S. corporate bond landscape. We are pleased to license the index to ProShares.”
 

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