CIA advises industry experts on the best fixed income investments available in the marketplace.
ETFs (exchange traded funds), invested in bonds are increasingly growing in popularity. CIA were recently queried by investmentnews.com regarding research CIA are undertaking in order to identify the best fixed income investments available today.
As specialist financial advisors CIA are aware of the fact that the vast majority of bond ETF’s use a market cap weighting methodology. This weighting system can be seen as a challenge for investors due to the out dated style of bond indexes. The majority of the 114 fixed-income ETFs utilize a market cap weight methodology, consequently this means companies which issue the most debt comprise the largest part of the index.
As a financial investment expert, Mitchell Reiner, chief investment officer at CIA stated, “we’ve begun discussions about whether or not market cap weighting makes the most sense”.
Please follow the link below to learn more about ETFs and market cap weighting or contact one of our financial advisors for advice on investing your wealth.