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Pros Load Up on Bond ETFs After 2009 Equity SurgeTickerspy’s Bond ETFs IndexBOND ETFS INVESTING IDEAS
BOND ETFS COVERAGEETFs with a focus on bonds
BOND ETFS CHART BOND ETFS METRICS
Bond ETFs underperformed the equity markets horribly during the stock surge in 2009, but a number of Pros are likely glad they picked up shares during Q4. As 2009 wound to a close, we urged investors not to forget the lessons they learned a year prior, when stocks tumbled across the board in response to the global economic downturn. While the S&P 500 has largely earned back its early-2010 losses, down days like today are likely leaving a number of investors wishing they had some pullback protection in their portfolio. The latest batch of 13F filings from the SEC was released last week, and while some prominent investors loaded up on speculative plays, there were plenty of hedge funds, mutual funds, and advisors hedging against equities and betting on yields with a variety of bond ETFs. As a whole, the Bond ETFs Index is underperforming the S&P 500 by -1.5% over the last month, as stocks rebounded from the January sell-off. Over the last week, select components of the Bond ETFs Index are trading higher by more than 2%. The SPDR Barclays High Yield Bond ETF (JNK), iShares iBoxx High Yield Corporate Bond Fund (HYG), and PowerShares High Yield Corporate Bond ETF (PHB) have outperformed the bulk of tickerspy’s more than 250 sector-based equity Indexes over the last five sessions. As of the most recent regulatory filings, 100 Pro investors counted the iShares Barclays Tips Bond Fund (TIP) among their top-15 U.S.-listed equity holdings, making it the Bond ETF Index’s most popular component among hedge funds, mutual funds, and advisors. Meanwhile, Pros were also adding the iShares iBoxx $ Investment Grade Bond Fund (LQD), iShares Barclays Aggregate Bond Fund (AGG), and Vanguard Total Bond Market ETF (BND). The Bond ETFs Index is consistently among the top-25 tickerspy Indexes ranked by yield, with an average of 3.7%. While relatively unexciting in a bull market for equities, there could be some interesting bond plays when the Federal Reserve board decides it is time to start boosting interest rates. Investors can track the Bond ETFs Index for performance trends and a suite of other metrics at tickerspy.com. Fun and informative, tickerspy.com is a free investing website where you can track multiple stock portfolios and compare against 250 proprietary Indexes tracking themes from dividends to ETFs to green energy to precious metals. Best of all, tickerspy.com lets you spy on the portfolios of nearly 3,000 Wall Street institutions and hedge funds and see graphs of their performance. Try tickerspy.com today and find out how you stack up against investing legends like Warren Buffett!
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February 23rd, 2010 at 6:25 pm
I question the alleged superiority of ETF bond packages to bond mutual funds for the small investor. The big advantage of the ETF is the ability to cost average small amounts ($200 at a time), the sales charges (usually around $10) of which could eat up profits on a slow-no grower like a bond fund. Better to establish a position in a no-load, low-cost Bogle-type mutual fund and put something in every month (or on the dips). But be careful. You can buy stocks for $9 at Schwab, and some ETF’s are now without any sales charge whatsoever. On the other hand, if you buy the “wrong” mutual fund, the sales charge is $50. So it’s hardly cost-efficient to “cost average” your investments in either an ETF or bond fund in that case.
February 24th, 2010 at 10:28 am
How can these ETF bond funds do well when rates are about to rise. I would go slow and steady an best.