Top ETF Bond Funds ListIn recent years the emergence of ETF bond funds has made it easier than ever to invest in bonds. Not only is it easy, but bond funds give you instant diversity that will help minimize your risk, and this is done in two ways. The first is that each individual fund typically invests in 50-150 different bonds. So the risk of any single bond defaulting is washed out by the others-making even investing in high yield bonds safer. Imagine how much time and money it would take for an individual investor to invest in 150 different bonds. With ETF bond funds you can add bonds to your portfolio in a diversified way starting with as little as a few hundred dollars. The second way bond funds give investors diversity is by offering investment opportunities in all types of bonds. This includes investment grade corporate bonds, municipal bonds, US Treasury bonds, and junk bonds just to name a few. Investors can choose US bond funds or go international with ease. By picking 4 or 5 different funds to invest in, you can create a strong and incredibly diverse bond portfolio, giving yourself exposure to literally hundreds of bonds. ETF bond funds are ideal because they trade like stocks and have low costs. To help you get started, I've compiled my own list of top ETF bond funds to develop a diversified portfolio.
Ticker-TFI Average Coupon-4.94% YTD Return-10.52% Fund description:The SPDRŽ Barclays Capital Municipal Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Barclays Capital Municipal Managed Money Index (ticker: LMMITR). Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs. 2. iShares 2015 S & P AMT-Free Municipal Series Ticker-MUAD Average Coupon-5% YTD Return-N/A The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P AMT-Free Municipal Series 2015 Index. The Fund will mature on a pre-specified date, however the Fund does not seek to return any predetermined amount at maturity. The Fund will invest in AMT-Free, investment grade, noncallable national municipal bond debt. Notes: Includes bonds issued by several states, transit authorities and universities. 3. SPDR Barclays Capital Long Term Credit Bond ETF Ticker-LWC Average Coupon-6.91% YTD Return-23.03% The SPDR Barclays Capital Long Term Credit Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of an index that tracks the long term (10+ years) sector of the United States investment bond market. Our apporach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs. Notes: Holdings include JP Morgan Chase, Comcast and Merck 4. SPDR Barclays Capital High Yield Bond ETF Ticker-JNK Average Coupon-9.15% YTD Return-50.5 % The SPDRŽ Barclays Capital High Yield Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Barclays Capital High Yield Very Liquid Index (ticker: LHVLTRUU). Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs. Notes: Holdings include GMAC, Citigroup 5. SPDR Barclays Capital Short Term Corporate Bond ETF Ticker-SCPB Average Coupon-5.84% YTD Return-N/A The SPDR Barclays Capital Short Term Corporate Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Barclays Capital U.S. 1-3 Year Corporate Bond Index (ticker: LF99TRUU). Our apporach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs. Notes: Holdings include Morgan Stanley, Citigroup, and Dow Chemical. 6. SPDR Barclays Capital Short Term International Treasury Bond ETF Ticker-BWZ Average Coupon-4.13% YTD Return-11.25% The SPDR Barclays Capital Short Term International Treasury Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of an index that measures the short-term (1-3 year remaining maturity) fixed rate, investment grade debt issued by foreign governments of developed countries. 7. SPDR Barclays Capital TIPS ETF Ticker-IPE Average Coupon-2.31% YTD Return-11.18% The SPDRŽ Barclays Capital TIPS ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance the Barclays U.S. Government Inflation-linked Bond Index (ticker: BCIT1T). Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs. 8. SPDR Barclays Capital Long Term Treasury ETF Ticker-TLO Average Coupon-5.99% YTD Return- -12.84% The SPDRŽ Barclays Capital Long Term Treasury ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Barclays Capital Long U.S. Treasury Index (ticker: LUTLTRUU). Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs. Note: coupon rates, holdings, and returns are quoted in January 2010 and could be subject to change.
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