Investors Flock To Safety In Bond ETFs (EDV, PLW, TLT, HYG, JNK, PHB)
“The equity markets got hammered on Tuesday, and traders sought safety in exchange-traded plays on fixed income securities. As a whole, the Bond ETFs Index is flat on the day as a subset of short or reverse ETFs mute overall gains, but long-term fixed-income funds gained as much as 80 basis points,” Indie Research Reports.
They go on to say, “The Vanguard Extended Duration ETF (NYSE:EDV), iShares Barclays 20 Year Treasury Bond Fund (NYSE:TLT), and PowerShares 1-30 Laddered Treasury Portfolio (NYSE:PLW) are all ahead by 50 bps or more for the session as the Dow tumbles by more than -200 points. While intraday gains by bond ETFs are rarely exciting, all three have added more than 8% over the last three months.”
“Elsewhere in the sector, the iShares iBoxx High Yield Corporate Bond Fund (NYSE:HYG), SPDR Barclays High Yield Bond (NYSE:JNK), and PowerShares High Yield Corporate Bond ETF (NYSE:PHB) are all off by more than -1% today as the VIX soars and risk aversion commands the market. Bullish investors can collect more than 8% yields in junk bond ETFs based on their current values and dividends paid over the past year,” Indie Research Reports.
We have put together some more details on all the ETFs mentioned and feel free to visit our ETF category for more details on any ETF.
Vanguard Extended Duration ETF (NYSE:EDV) Visit Our EDV Category: HERE
The investment seeks to replicate, net of expenses, the Barclays Capital U.S. Treasury STRIPS 20-30 Year Equal Par Bond index. The fund invests at least 80% of assets in U.S. Treasury securities held in the index. It maintains a dollar-weighted average maturity consistent with that of the index, which generally ranges between 20 and 30 years.
iShares Barclays 20 Year Treasury Bond Fund (NYSE:TLT) Visit Our TLT Category: HERE
The investment seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays Capital U.S. 20+ Year Treasury Bond index. The fund generally invests at least 90% of assets in the bonds of the underlying index and at least 95% of assets in U.S. government. It may also invest up to 10% of assets in U.S. government bonds not included in the underlying index. The fund also may invest up to 5% of assets in repurchase agreements collateralized by U.S. government obligations and in cash and cash equivalents.
PowerShares 1-30 Laddered Treasury Portfolio (NYSE:PLW) Visit Our PLW Category: HERE
The investment seeks investment results that correspond generally to the price and yield (before fees and expenses) of an index called the Ryan/Mergent 1-30 Year Treasury Laddered index. The fund normally invests at least 80% of total assets in U.S. Treasury securities. It may invest at least 90% of total assets in the securities that comprise the Ryan/Mergent 1-30 Year Treasury Laddered index. The fund is nondiversified.
iShares iBoxx High Yield Corporate Bond Fund (NYSE:HYG) Visit Our HYG Category: HERE
The investment seeks the results that correspond generally to the price and yield performance, before fees and expenses, of the iBoxx $ Liquid High Yield index. The fund invests at least 90% of assets in securities that comprise the index. However, it may invest up to 20% of assets in certain futures, options and swap contracts, cash and cash equivalents, and in bonds not included within the index. The index is a rules-based index consisting of the most liquid and tradable U.S. dollar-denominated, high-yield corporate bonds for sale in the U.S. The fund is nondiversified.
SPDR Barclays High Yield Bond (NYSE:JNK) Visit Our JNK Category: HERE
The investment seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays Capital High Yield Very Liquid index. The fund normally invests at least 80% of total assets in securities that comprise its benchmark index. It may also invest its other assets in securities not included in its benchmark index. The fund is nondiversified.
PowerShares High Yield Corporate Bond ETF (NYSE:PHB) Visit Our PHB Category: HERE
The investment seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an index called Wachovia High-Yield Bond index. The fund invests at least 80% of total assets in high yield corporate bonds payable in U.S. dollars. It invests at least 80% of total assets in the securities that comprise the Wachovia High-Yield Bond index. The fund may invest up to 20% of assets in futures, options, swaps contracts and high yield corporate bonds not included in the Wachovia High-Yield Bond index. It is nondiversified.
Related posts:
- Investors Can’t Get Enough Of Junk Bond ETFs (SHY, IEF, HYG, LQD, JNK, PHB)
- Investors Dumped Stocks For Bond ETFs In January
- Should Investors Steer Clear Of High-Yield Bond ETFs? (HYG, JNK)
- ETF Investors Head For Safety As Another Bear Market May Be In The Works Ahead
- High-Yield Bond ETFs Could Pay Off For Investors With A High Risk Tolerance


Most Comments