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Sunday, July 7, 2013

Bond ETF Performance

Fed Tapering?
Here are the year-to-date returns through Friday as reported by Morningstar on the ETFs that I follow.  As you can see, the returns vary widely and the funds are quite different.  For what it's worth, you'll find that most 401(k)s do not offer a decent selection of bond funds - you are forced to select from a couple.  On the other hand, if you have an IRA, you have the selection available below as well as many others - another reason on the side of rolling over 401(k)s.

In general, you want to limit the bond exposure in your brokerage account because of taxes.

Generally, as you can see in the table, the shorter duration or maturity funds did best as would be expected in a rising yield environment.  This impact can be seen by comparing IEI (-2.57%) versus IEF (-5.75%).  The table also shows the poor performance of emerging markets and international in general.

The bogey in the bond market is AGG, the Barclay's Aggregate Bond Index - it is to the bond market what the S&P 500 is to stocks. 

Disclosure:  this post is for educational purposes.  Individuals should do their own research or consult a professional before making financial transactions.




ETF YTD RET.  DESCRIPTION
HYG -0.7 HIGH YIELD
AGG -3.61 TOTAL MARKET
SCHZ -3.46 TOTAL MARKET
MBB -3.43 MBS
CSJ -0.3 1-3 YR. CORP. 
IEI -2.57 3-7 YR. TREAS.
IEF -5.75 7-10 YR. TREAS.
EMB -10.85 EMERGING MKT.
BKLN 1.4 BANK LOANS
IHY -3.43 INT'L. HIGH YLD.
PFF -0.52 PREFERRED STK.
FLOT 0.19 FLOATING RATE
BSJF 0.73 2015 HIGH YLD.
LQD -5.56 INVEST GRADE CORP.
BAB -6.21 BUILD AMER.
BOND -3.38 PIMCO TOTAL RET.
HYS 1.74 0-5 YR. HIGH YLD.
VCIT -5.12 INTERM. CORP. 

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