iShares Core Total U.S. Bond Market ETFNYSEARCA
Nov. 21, 2013, 3:19 PM
- Nearly $2.3T in ETPs and mutual funds track Barclays (BCS +3%) indexes, making the bank the 2nd biggest provider after S&P, according to Lipper. Among the crown jewels is the U.S. Aggregate Bond Index (ETF: AGG) which Barclays purchased from Lehman amid the financial crisis.
- The possible purchase was MSCI's (MSCI +1.5%) idea, reports Reuters, and Barclays hasn't yet decided to sell the unit, and - if it did - could seek other suitors.
- "MSCI would be a natural buyer for that business since they need more fixed income," says one ETF executive who's regularly on the horn to index providers to expand their offerings. The ETF price war has put pressure on MSCI as its fund provider clients look to cut costs. About a year ago, Vanguard sent MSCI tumbling when it announced the pulling of about 24 funds away from benchmarks provided by MSCI (the stock has recovered very nicely).