Barclays‚ Bond ETFs Begin AMEX Trading

Four iShares bond exchange-traded funds have begun trading on the American Stock Exchange.

The new funds, offered by Barclays Global Investors, include iShares Lehman 1-3 Year Treasury Bond Fund (SHY), iShares Lehman 7-10 Year Treasury Bond Fund (IEF), iShares Lehman 20+ Year Treasury Bond Fund (TLT) and iShares GS $InvesTop Corporate Bond Fund (LQD).

"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. "The fact is that the range of potential returns of bond funds is narrower than the range of potential returns of stock funds. By providing low-expense ratios, investors in iShares bond ETFs will have more capital working for them.

"Fixed-income iShares will also allow individual investors to see for the first time intra-day pricing of groups of bonds that have similar maturities or quality. Unlike stocks where prices are widely disseminated, the fair market value of bonds that trade on the secondary market is difficult for individual investors to access."

For more information on iShares, call (800) 474-2737 or visit

Nuveen To Launch Second Preferred-Stock ETF

Nuveen Investments plans to launch a second closed-end exchange-traded fund specializing in investment-grade taxable preferred securities. The new fund–called the Nuveen Quality Preferred Income Fund 2–will seek high current income, with a secondary objective of enhancing the portfolio‚s value relative to the market for preferred securities.

The registration statement was filed with the Securities and Exchange Commission on July 2. In June, Nuveen raised more than $960 million with the launch of the Nuveen Quality Preferred Income Fund (ticker JTP)–the first U.S. closed-end exchange-traded fund invested primarily in investment-grade quality taxable preferred securities, according to Lipper Inc.

"Taxable preferred securities historically have had a low correlation to other asset classes, and may add the conservative diversification strategy investors are seeking to balance their overall portfolio," says Paul Williams, Vice President for Closed-End Exchange-Traded Fund Development.

Stamford, Conn.-based Spectrum Asset Management Inc., a leading manager of preferred securities with approximately $2.3 billion in assets under management, will sub-advise the fund.

For more information, contact your securities representative or Nuveen Investments, 333 West Wacker Drive, Chicago, Ill. 60606, for a prospectus.

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