Creation of Bond ETFs Gets Green Light

According to a news release, with the approval of the US Securities and Exchange Commission, the iShares Lehman US Treasury Inflation Protected Securities and US Aggregate Bond Funds are scheduled to launch on the American Stock Exchange in the fourth quarter of 2003. Each fund will have an expense ratio of 0.20%.

The iShares Lehman US Treasury Inflation Protected Securities Fund will be designed to track the Lehman Brothers US Treasury Inflation Notes Index that measures the performance of the inflation protected public obligations of the US Treasury, also known as “TIPS,” the news release said. The iShares Lehman US Aggregate Bond Fund will be designed to track the dominant broad US investment grade bond index that includes multiple asset classes and maturity ranges.

iShares are index funds that are bought and sold like common stocks on national securities exchanges as well as certain foreign exchanges. Investors can purchase and sell shares through any brokerage firm, financial adviser, or online broker, and hold the funds in any type of brokerage account.

iShares are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an adviser to iShares