Bond ETF Revolution? State Street Plans Fundamental Fixed Income Fund

State Street, the Boston-based firm that maintains a broad-based lineup of fixed income ETFs, recently made an interesting SEC filing detailing plans for a new type of bond ETF. The proposed SPDR Barclays Capital Issuer Scored Corporate Bond ETF (CBND) would seek to replicate the performance of the Barclays Capital Issuer Scored Corporate Index, a benchmark that uses fundamental factors to determine underlying holdings. The majority of fixed income benchmarks that serve as the basis of ETFs are cap weighted, meaning that the larger an eligible debt issue by market value, the larger the weighting within the index. But closer scrutiny on index construction and maintenance methodologies has caused some to rethink the manner in which they achieve fixed income exposure. Last year, PowerShares switched the index linked to its high yield bond ETF (PHB) to the RAFI High Yield Bond Index, a benchmark developed by [...] Click here to read the original article on ETFdb.com. Related Posts: Bond ETFs: 12 Stops Along The Risk/Return Spectrum Free ETF Trading: Comparing All The Options Ten ETFs Every Advisor Should Know (But Most Have Never Heard Of): Part II PHB: Different Kind Of Junk Bond ETF 2010: Year Of The Bond ETF