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Putting Bond ETF Dollars To Work

TedTed
in The Bullpen
FYI: The first few days of the year have been marked by strong investor demand for ETFs, including U.S. bond ETFs.

So far, the demand seems centered on some of the larger, broader funds—funds like the iShares Core U.S. Aggregate Bond ETF (AGG) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK). But if you listen to the pundits, some point out there’s too much duration risk in the Barclays Aggregate (ETFs like AGG) right now, with portfolio duration at a historical high of about 6.7 years. The longer the duration, the more sensitivity the portfolio to interest rate changes.

There are also those who say equity market strength should bode well for high-yield debt, but in 2017, it was funds like the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) that delivered the bigger gains relative to junk bond counterparts like JNK.
Regards,
Ted
http://www.etf.com/sections/features-and-news/putting-bond-etf-dollars-work
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