Thursday’s ETF To Watch: Treasury Ladder Fund (PLW)

The fixed income ETF space has grown considerably over the past two years, as investors worried about a slowdown in developed markets have bought up bonds despite record low yields. The first 11 months of 2010 saw cash inflows of approximately $100 billion into the ETF industry, and about $29 billion of that total went to bond products. The prices of bonds have skyrocketed in recent months on risk aversion, leading many analysts to worry a bond bubble is forming–though these fears have somewhat calmed as equities have made a push to end 2010 on a positive note. Recent events have raised new concerns about the fixed income space, as Treasury prices fell and yields spiked to the highest level in quite some time [see also Worried About Fixed Income Bubbles? Try A Dividend ETF]. From Monday to Wednesday, yields on the 10-year notes surged by 30 basis points, the largest [...] Click here to read the original article on ETFdb.com. Related Stories: PIMCO Launches Broad U.S. Treasury Index Fund (TRSY) What’s Gotten Into Treasury ETFs? Tuesday’s ETF To Watch: Long-Term Treasury Bond ETF (TLT)