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Bond ETFs One of Few Bright Spots On the Day (TIP, BWX, EMB, IPE, JNK, HYG, PHB)

by Eric Monte | July 27th  |  Filed in: Dividend News

Equity investors sought safety in bond ETFs on Wednesday as traders turned the spotlight on increased worries of the United States debt ceiling issue. While the sector is mixed for the session, the vast majority of Pro favorites are in positive territory for the day, and with Bond ETFs Index components yielding an average 3.3%, one can see why these low-volatility securities can be attractive amid a market pullback. Depending on the outcome of the debt ceiling battle, there is a chance that bonds would not represent the safe haven illustrated today.

Heading into the second quarter, 96 13-F filing Asset Managers held the iShares Barclays TIPS Bond Fund (TIP) in their top-15 U.S.-listed equity positions, ranking the ETF first among peers in Pro popularity. Meanwhile, other widely held ETFs included the SPDR Barclays Capital International Treasury Bond ETF (BWX), iShares JPMorgan USD Emerging Markets Bond Fund (EMB), and the SPDR Barclays Capital TIPS ETF (IPE) were all among Pro favorites. All four are adding fractional gains amid a pullback by the major equity benchmarks today.

Investors seeking the biggest yields can look to the SPDR Barclays High Yield Bond (JNK), iShares TR HIGH YLD CORP (HYG), and the PowerShares High Yield Corporate Bond ETF (PHB), all of which yield 6% or more based on current prices and their latest distributions. All three pay out on a monthly basis, so even relatively short-term positions can yield incremental income for investors.

For more on bond ETFs, and the full list of tickerspy’s highest yielding Indexes , visit tickerspy.com.

More on this topic (What's this?) Read more on Bond ETFs at Wikinvest

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