Bringing you live news and features since 2006 

Numbers

Market Vectors fixed income ETFs receive NAIC designations

RELATED TOPICS​

Six Market Vectors fixed income exchange-traded funds have received risk-based capital ratings from the Securities Valuation Office (SVO) of the National Association of Insurance Commissioners (NAIC).

 
Ratings assess credit quality of fixed income securities and can allow for favourable risk-based capital treatment when a fund is added to portfolios of state regulated insurance companies.
 
SVO ratings range from one to six, with one being highest in terms of credit quality. The ratings are:
 
Investment Grade Floating Rate Note ETF (FLTR) – 1
Intermediate Municipal Index ETF (ITM) – 1
Emerging Markets Local Currency Bond ETF (EMLC) – 2
International High Yield Bond ETF (IHY) – 3
Emerging Markets High Yield Bond ETF (HYEM) – 3
High Yield Municipal Index ETF (HYD) – 4
 
“We’re very pleased to have received SVO designations for six of our funds, as these ratings help provide state regulated insurance companies with guidance as to the credit quality of a fund’s underlying holdings,” says Susan Marino, senior vice president and director of national accounts at Van Eck Global. “We’re pleased to offer insurance companies these Market Vectors ETF solutions as they take a closer look at opportunities to expand their investment choices.”
 
“Insurance companies are increasingly looking to use ETFs based on their flexibility, transparency and low-cost structure,” says Bill Best, managing director, institutional sales and investor relations at Van Eck Global. “NAIC ratings are a critical tool allowing insurance general account managers to utilise this fast growing and dynamic part of the market while also efficiently managing their risk-based capital requirements.”
 
NAIC, the US standard-setting and regulatory support organisation, was created and is governed by the chief insurance regulators of the 50 states, the District of Columbia and five US territories. The SVO is responsible for day-to-day credit quality assessment and valuation of securities owned by state regulated insurance companies. The assignment of an NAIC designation allows a fixed income ETF to be reported as a bond, and therefore receive a more favourable risk-based capital treatment.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by