Eric Balchunas is an ETF Analyst at Bloomberg. In this role, he manages ETF data on the Bloomberg terminal. He also appears in a weekly on-air segment for Bloomberg TV and Radio called "Exchange-Traded Friday" in which he discusses different ETFs and the way investors can utilize them.
Wait, are these Treasury bonds or Tesla shares? Two exchange-traded funds with “Treasury” in their names are running circles around other bond ETFs. The Pimco 25+ Year Zero US Treasury Index Exchange-Traded Fund (ZROZ ) and the Vanguard Extended Duration Treasury ETF (EDV ) are up 35 percent and 33 percent this year. That’s more than 10 percentage points above the bond ETF holding third place, the iShares 20+ Year Treasury Bond ETF (TLT ). How on earth do you get returns like those with Treasuries?
This analysis is by Bloomberg Intelligence analysts Eric Balchunas and Sean Casey. It appeared first on the Bloomberg Terminal. Passive investing killing one form of active, spawning othersActive management isn’t dead, but it’s being forced to evolve by the rise of low-cost passive investing. Since 2013, $1.5 trillion has flowed into passive vehicles, while $800 billion left active peers.
Despite saving investors about $20-billion a year in costs and taxes on capital gains distributions, exchange-traded funds are being blamed for most everything these days -- even things that haven’t happened yet. In the past six weeks alone, ETFs were accused of being weapons of mass destruction, creating a stock market bubble, holding stocks hostage, being hideous, making the market dumb and causing trading glitches.