The other alternative I can think of (and this is closer to the leveraged bets of macro speculators) is to buy options
on bond ETFs.
Be wary of paying premiums
on bond ETFs... and maybe look at some closed - end funds that trade at discounts.
Karen gives an explainer
on bond ETFs.
Matt and Karen break down the findings
on bond ETFs from the most recent Cerulli report, and chat about where the asset class might be headed in the future.
Does anyone have an opinion
on bond ETFs, i.e. which might be the best?
@John Shedletsky: As fennec said, you can buy options
on Bond ETFs like TIP.
Karen gives an explainer
on bond ETFs.
It would also trigger a 4 year long Head and Shoulders top with a price objective to at least 86
on the Bond ETF.
Maybe buying put options (long term)
on some bond ETF to limit my risks.
@Catherine: Just to clarify, ZDB had an average return of 1.54 % over the past 2 years — sometimes investors see the capital loss
on their bond ETF holdings and forget about the interest they have received from the fund over the past 2 years.
Not exact matches
More from
ETF Spotlight: In run
on S&P 500, investors favor 3 stock and
bond bets Biggest stocks were biggest losers in Q1 Watch: How much has Boeing and China trade war hurt
ETFs?
Patricia Oey, a senior analyst at Morningstar who focuses
on ETFs, said investors should be aware of volatility in emerging market
bonds.
An easier option is to purchase a
bond ETF or mutual fund focused
on a country or region.
This is kind of DIY turned up a notch — index funds and
ETFs are baskets full of stocks (or
bonds, depending
on the type of fund you've selected).
These include currency - hedged
ETFs, triple - levered
ETFs based
on commodities, unconstrained
bond funds with short positions betting against U.S. Treasurys, private equity funds, emerging market debt instruments, historically less - liquid bank loan funds, and all manner of actively managed strategies packaged in supposedly easy to buy and sell wrappers.
A particular group of managers who constantly update their view
on the best macro opportunities are known as
ETF strategists — they use index
ETFs to create a global stock and
bond portfolio.
It's the largest hedge
ETF, with $ 1.1 billion in assets; it melds numerous strategies that include taking both long and short positions
on U.S. stocks and
bonds and emerging markets.
All they need to know, is if they can hit 98 bids
on X number of
bonds that the
ETF's are looking for, they can hit those bids, buy the
ETF, do a redemption, where they exchange
ETF's for the
bonds (to get net flat) and take out a profit if the
ETF is trading cheap enough.
Here's the effect that rise in rates had
on certain maturities in the
bond market in May and June based
on iShares
ETFs:
Among the top 10 government
bond ETFs, all but one are focused
on specific maturity ranges.
Blackrock's iShares unit recently came out with four
ETFs that will focus
on corporate
bonds and have set maturity dates of 2016, 2018, 2020 and 2023.
Consider this simple example with a three - instrument portfolio comprised of a S&P 500
ETF, a long - term
bond ETF and a cash - proxy
ETF.1 Based
on daily returns since 2010, the annualized volatility
on the cash proxy (a short - term
bond ETF) is effectively zero, compared to 16 % and 15 % for the stock and
bond ETFs.
Mutual funds and
ETFs that include stocks may focus
on a particular type of stocks, such as blue chip stocks, or may include other securities, such as
bonds.
On the other hand, U.S. fixed - income ETFs had outflows of $ 1.7 billion as bond prices sagged and interest rates climbed on the prospect of a more aggressive Fe
On the other hand, U.S. fixed - income
ETFs had outflows of $ 1.7 billion as
bond prices sagged and interest rates climbed
on the prospect of a more aggressive Fe
on the prospect of a more aggressive Fed.
In a rising interest rate environment, the risk that investors have in owning all
bond mutual funds and / or
bond ETFs for their
bond allocation is that both vehicles are managed
on a relative return basis versus a benchmark index.
PIMCO Total Return
ETF switched ticker symbols from TRXT to
BOND on the NYSE Arca in April and has a gross expense ratio of 0.55 %, which is notably cheaper than the 0.85 % charged for the more established PIMCO Total Return A (PTTAX), according to Rosenbluth.
Jon Smith, of DT Investment Partners, discusses the effect of an interest rate hike
on bond markets... see why we prefer individual
bond holdings over engineered
ETFs in this environment.
Yields
on the iShares S&P TSX 60 (XIU - TO) are around 2.25 % and
on the iShares DEX Universe
Bond Index
ETF of mid-term
bonds is around 3.8 % with -LSB-...]
Guggenheim's Bill Costigan
on why a passive approach to
bond investing is a mistake, and how his firm's BulletShares
ETFs can take the pain out of building
bond ladders.
BMO Long Corporate
Bond ETF Ticker: ZLC / TSX More investors are shunning
bonds and focussing
on equities.
TLT, the
ETF representing one of the most sensitive parts of the
bond market, has fallen 16 % from its highs in July (It remains up 1.6 %
on the year).
We really don't own any stocks /
etf /
bonds that will mean anything, is betting solely
on physical real estate and a huge pension a bad idea?
While fixed - income
ETFs had net inflows
on the whole, the iShares iBoxx $ Investment Grade Corporate
Bond ETF (LQD) and the iShares 20 + Year Treasury
Bond ETF (TLT) were at or near the top of the outflows list.
Junk -
bond ETFs rallied
on Wednesday, as markets breathed relief that the «fiscal cliff» is no longer a concern and as a result,
bond yields are under 6 percent for the first time ever, and junk
ETF share prices hit levels not seen in years in some cases, according to an article
on ETF Trends.
ProShares has rolled out the first
bond ETF that focuses solely
on S&P 500 issuers to help investors gain exposure to some...
The iShares iBoxx $ Investment Grade Corporate
Bond ETF (LQD), the iShares iBoxx $ High Yield Corporate
Bond ETF (HYG) and the iShares Core U.S. Aggregate
Bond ETF (AGG) all made an appearance
on the outflows list.
And like
ETFs, minimums for individual stocks, CDs (certificates of deposit), and
bonds are based
on their current market prices.
One of my readers alerted me to the fact that someone bought 15,000 January 2016, 80 - strike puts
on the HYG high yield
bond ETF.
Bond ETFs Sold On the outflows side, bond ETFs fared the worst, as bond prices fell and yields ticked
Bond ETFs Sold
On the outflows side,
bond ETFs fared the worst, as bond prices fell and yields ticked
bond ETFs fared the worst, as
bond prices fell and yields ticked
bond prices fell and yields ticked up.
ShareBuilder does not allow for directly investing in company or government issued
bonds, but you are able to invest in
bond funds, which are mutual funds or
ETFs investing in
bonds on the shareholder's behalf.
Below, find our best articles
on fixed income
ETFs, covering everything from junk
bonds to munis to TIPS.
Financial Engines Advisors L.L.C. Buys SPDR S&P 600 Small Cap Value
ETF (based
on S&P Sma, SPDR S&P 600 Small Cap Growth
ETF (based
on S&P Sm, SPDR Nuveen Bloomberg Barclays Municipal
Bond, Sells Alaska Air Group Inc, Edwards Lifesciences Corp, Graco Inc
RBC Global Asset Management Inc. today announced that the RBC Target 2016 Corporate
Bond Index
ETF (TSX: RQD) will mature
on Friday, November 18, 2016...
Reduces fees
on seven RBC Target Maturity Corporate
Bond ETFs TORONTO, January 15, 2014 - RBC Global Asset Management...
2016.09.15 RBC Global Asset Management Inc. announces final details
on maturity of RBC Target 2016 Corporate
Bond Index
ETF RBC Global Asset Management Inc. (RBC GAM) today announced final details regarding the scheduled maturity of RBC Target 2016 Corporate
Bond Index
ETF (TSX: RQD)...
2016.03.15 RBC Global Asset Management Inc. announces maturity date of RBC Target 2016 Corporate
Bond Index
ETF RBC Global Asset Management Inc. today announced that the RBC Target 2016 Corporate
Bond Index
ETF (TSX: RQD) will mature
on Friday, November 18, 2016...
For example, investors might use the iShares iBoxx $ High Yield Corporate
Bond ETF (HYG) to gain access to greater credit risk through an
ETF focused
on bonds rated BB and B, and the iShares iBoxx $ Investment Grade Corporate
Bond ETF (LQD) to gain access to less credit risk through an
ETF focused
on bonds rated A and BBB.
Vanguard Cuts Fees
On 13 ETFs Vanguard slashed expense ratios on 13 of its ETFs in April, including a nearly 17 percent cut in the price of its Vanguard S&P 500 ETF (NYSE Arca: VOO), a 14 percent price cut on its Vanguard Total Stock Market ETF (NYSE Arca: VTI) and a 9 percent price cut on its Vanguard Total Bond Market ETF (NYSE Arca: BND
On 13
ETFs Vanguard slashed expense ratios
on 13 of its ETFs in April, including a nearly 17 percent cut in the price of its Vanguard S&P 500 ETF (NYSE Arca: VOO), a 14 percent price cut on its Vanguard Total Stock Market ETF (NYSE Arca: VTI) and a 9 percent price cut on its Vanguard Total Bond Market ETF (NYSE Arca: BND
on 13 of its
ETFs in April, including a nearly 17 percent cut in the price of its Vanguard S&P 500
ETF (NYSE Arca: VOO), a 14 percent price cut
on its Vanguard Total Stock Market ETF (NYSE Arca: VTI) and a 9 percent price cut on its Vanguard Total Bond Market ETF (NYSE Arca: BND
on its Vanguard Total Stock Market
ETF (NYSE Arca: VTI) and a 9 percent price cut
on its Vanguard Total Bond Market ETF (NYSE Arca: BND
on its Vanguard Total
Bond Market
ETF (NYSE Arca: BND).
Van Eck adds another yield - generating
ETF, this one focused
on emerging market corporate junk
bonds.
As of this writing, the SPDR S&P 500
ETF Trust (SPY) and the iShares Core U.S. Aggregate
Bond ETF (AGG) were last trading close to unchanged
on the session.