iShares offers shorter-duration ETFs as rate rise looms
Europe’s largest ETF provider, iShares, has seen a surge in demand for ETPs in the wake of the Retail Distribution Review. Demand in the opening months of 2014 outstripped sales for the entirety of 2013, but where are these burgeoning inflows going and what is driving them?
The increasing likelihood that an interest rate rise is approaching is stoking investor appetite for shorter-duration exchange-traded products (ETPs).
Mark Johnson, head of UK sales at iShares, says the exchange-traded fund (ETF) provider has responded to mounting concerns over the Bank of England's predicted direction of travel with the launch of an ETF based on a sterling corporate bond index that leaves investors simply with underlying credit exposure.
"We have been innovative in launching a
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