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Fixed Income iShares List And Begin Trading On The American Stock Exchange - Investors Now Have A New Vehicle For Purchasing Bonds

Date 26/07/2002

The American Stock Exchange (Amex) and Barclays Global Investors (BGI) today launched trading on the first of the latest generation of exchange traded funds (ETFs) - Fixed Income iShares, the first debt-based ETFs to hit the market. With expense ratios of just 0.15%, the four new Fixed Income iShares include:
  • iShares Lehman 1-3 Year Treasury Bond Fund (ticker: SHY)
  • iShares Lehman 7-10 Year Treasury Bond Fund (ticker: IEF)iShares GS $ InvesTopTM Corporate Bond Fund (ticker: LQD)
"The Amex continues to see tremendous interest in exchange traded funds. Their assets and trading volume have increased dramatically since the first ETF began trading at the Amex in 1993, and we are excited about the opportunities presented by this new generation of ETFs," said Salvatore F. Sodano, chairman and CEO of the Amex.

BGI first introduced iShares - index funds that offer diversification, market tracking and lower expenses - on the Amex in May 2000. Fixed Income iShares represent a new generation of ETF products. Fixed Income iShares are portfolios of bonds that can be bought and sold throughout the trading day like shares of stock. Similar to traditional open-ended mutual funds, these bond-based ETFs enable investors to purchase a basket of bonds with one simple transaction. Unlike bond funds however, bond ETFs may be traded throughout the day at market price. In addition, whereas mutual funds are required to disclose their holdings semi-annually, iShares holdings are available daily.

"We've enjoyed a strong relationship with ETF partner Barclays Global Investors over the years, and today we are very happy to help them bring Fixed Income iShares to the marketplace," said Cliff Weber, senior vice president of the Amex ETF Marketplace.

The addition of the four Fixed Income iShares brings the total number of ETFs listed on the Amex to 121. BGI expects to list additional Fixed Income iShares on the Amex at a later date.

"iShares bond ETFs offer investors one of the best value propositions among bond investments today," said Lee Kranefuss, CEO of BGI's Individual Investor Business. "With the current market environment, the bond iShares provide investors compelling benefits: diversification, transparency in portfolio holdings and intra-day pricing."