The world’s first bond index fund was launched in 1973 by Lehman Brothers, offering individual investors an alternative to over the counter OTC bond transactions and actively managed fund investments. In 2002, iShares launched the first fixed income exchange traded funds ETF, namely the iShares iBoxx $ Investment Grade Corporate Bond ETF and the iShares 20 Year Treasury Bond ETF.
Passive investing in fixed income took its shape approximately 10 years later than the emergence of equity indices. Today, passively managed fixed income funds account for less than a quarter of all global mutual funds and only 2% of ETF assets, but is growing at a faster pace...
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