@article {Houweling39, author = {Patrick Houweling}, title = {On the Performance of Fixed-Income Exchange-Traded Funds}, volume = {3}, number = {1}, pages = {39--44}, year = {2012}, doi = {10.3905/jii.2012.3.1.039}, publisher = {Institutional Investor Journals Umbrella}, abstract = {The authors evaluate the performance of fixed-income exchange-traded funds (ETFs). They find that Treasury ETFs are indeed able to track their benchmarks but that investmentgrade corporate bond ETFs underperform their benchmarks and high-yield corporate bond ETFs severely underperform their benchmarks. They provide evidence that the transaction costs of the underlying bonds are a key determinant of an ETF{\textquoteright}s underperformance. The authors conclude that indices consisting of bonds that are more costly to trade are more difficult to track.TOPICS: Exchange-traded funds and applications, mutual fund performance, portfolio construction}, issn = {2154-7238}, URL = {https://jii.pm-research.com/content/3/1/39}, eprint = {https://jii.pm-research.com/content/3/1/39.full.pdf}, journal = {The Journal of Beta Investment Strategies} }