Pros Load Up on Bond ETFs After 2009 Equity Surge
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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