Q: Can I have your opinion on this fixed income etf.
It is Blackrock first actively managed fixed income ETF.
The US version is called BINC.
What are the risks/benefits of this product.
Thanks a lot.
It is Blackrock first actively managed fixed income ETF.
The US version is called BINC.
What are the risks/benefits of this product.
Thanks a lot.
5i Research Answer:
The Canadian ETF has a short history, but has raised $170M in assets. Indicated yield is 5.60%, YTD return 1.37%. It holds BINC units. BINC does have a one-year return of 6.73%. It is 58% US, 10% Cayman Islands, and various other countries in terms of exposure. Corporate debt is 49.4%, mortgage and government the balance. 67% of the portfolio has maturities of less than seven years. Beta is 0.40%, so it has done a good job of being less correlated than the S&P 500. We would like to see a longer history of performance, but certainly see it as an acceptable ETF for income right now.