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Why Invest With VanEck?

Fixed income ETFs have become important investment tools for insurance companies. Common use cases include accessing certain complex asset classes such as CLOs or emerging markets (EM) debt, allocating to overlooked market segments such as fallen angel high yield bonds, or protecting against rising rates with investment grade floating rate bonds. Fixed Income ETFs also provide diversification into smaller accounts, enable building a liquidity sleeve around a core bond portfolio, and act as a tool for making tactical portfolio allocation changes. The many benefits of fixed income ETFs include low cost, liquidity, diversification, monthly income payments and bond-like accounting treatment for ETFs with NAIC ratings.

VanEck NAIC-Designated Bond ETFs

In addition to the liquidity, transparency and efficiency that fixed income ETFs can provide, NAIC-designated bond ETFs offer additional benefits to insurance companies. They can be classified as a "long-term bond issuer obligation" on Schedule D, which allows more favorable risk-based capital treatment with the added ability to adopt "systematic value" accounting, mitigating potential balance sheet volatility.

Picture of Phil Kirouac

Phil Kirouac — Director, Institutional Business Development, Insurance Channel

Phil brings a wealth of knowledge and experience to the needs of U.S. insurance companies. His responsibilities cover institutional business development and client relations across general account and annuity investment platforms.

212.293.2028 | 646.906.1226

Featured ETFs

Benefits of Fixed Income ETFs
VanEck offers innovative fixed income ETFs that insurance companies can use rather than owning individual bonds. ETFs offer several benefits including broad diversification, transparency and the ability to buy and sell shares on an exchange.
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Hear from our Experts

November 10, 2022

What happens to fixed income returns if there is a Fed pause, pivot or hawkish surprise? Thanks to currently attractive carry, we believe fixed income may be resilient in various scenarios.

October 26, 2022

In the current environment, CLOs may provide an attractive return opportunity among credit assets, with demand remaining robust.

October 19, 2022

Carry has come back to the fixed income market and is higher as you move farther out the credit risk curve, leading current income to play a more significant role in bond returns.

Patrick Schramm ETF Strategist

October 17, 2022

We explore what stage of the interest rate cycle we are in and what bonds can help investors be prepared for what’s ahead.

July 15, 2022

CLOs have historically offered a compelling combination of above-average yield, strong risk profiles, and the potential for strong upside appreciation.

Important Definitions & Disclosures

NAIC Designations are the intellectual property of the National Association of Insurance Commissioners (NAIC) and are redistributed here under License. An NAIC Designation is a proprietary symbol used by the NAIC Securities Valuation Office (SVO) to denote a category or band of credit risk (i.e., the likelihood of repayment in accordance with a written contract) for an issuer or for a security. NAIC Designations may be notched up or down to reflect the position of a specific liability in the issuer’s capital structure and/or the existence of other non-payment risk in the specific security. Under NAIC reporting rules, shares of an ETF are presumed to be reportable as common stock. The SVO may classify an ETF as a bond or preferred stock and assign it an NAIC Designation if it meets defined criteria. For a discussion of these criteria please call the SVO or refer to the Purposes and Procedures Manual of the NAIC Investment Analysis Office. The assignment of an NAIC Designation is not a recommendation to purchase the ETF and is not intended to convey approval or endorsement of the ETF Sponsor or the ETF by the NAIC.