Posts Tagged ‘TIPS’

This New PIMCO ETF Seeks Global Yields With Inflation Protection (ILB, SCHP)

June 10th, 2012

ETF Base: Carry trades are a key part of international speculation. Investors borrow funds in low-cost markets like the US and Japan to invest internationally for a higher yield. Read more…


Multi-Asset Class Strategy For A Rising Rate Environment (HYG, IOO, FLOT)

May 1st, 2012

Del Stafford: Recently my group has seen an increase in client conversations around the prospect of inflation and rising rates. The combination of recent weak economic news and strong equity market performance and commodity prices has caused some investors to think more about these things as they shape their Read more…


Investors Turn To TIPS As Warren Buffett Warns On Inflation (TIP, STPZ, LTPZ, KO, IBM)

February 16th, 2012

Don Miller: Warren Buffett last week did more than warn investors on the dangers of low interest rates and inflation. The Oracle of Omaha also had harsh words for traditional bonds.  In a Fortune article Buffett went so far as to say, “Right now bonds should come with a warning label.” Read more…


New Inflation / Deflation ETNs: Better Than TIP? (DEFL, INFL, RRF, TIP, CPI)

December 7th, 2011

Michael Johnston: PowerShares and Deutsche Bank, partners on a suite of exchange-traded notes targeting commodities and several international bond markets, have rolled out a pair of ETNs designed to target changes in inflation expectations. The new notes will be linked to indexes that are designed to measure Read more…


Bond Exchange-Traded Funds Are Gaining Momentum

September 25th, 2009

bonds“Assets invested in this slice of the ETF market rose from $53 billion in mid-September 2008 to $91 billion this September, or 59 percent, according to TrimTabs Investment Research. What’s more, the sheer number of bond ETFs Read more…


PIMCO Launches Two New ETF’s That Invest In TIPS (LTPZ, TIPZ)

September 8th, 2009

pimco“PIMCO doubled the size of its ETF offerings for the second time in as many weeks.  Of course, when you are going from one to two, and then two to four Read more…


Buy Inflation Insurance With These ETF’s (TIP, IPE, UDN, WIP)

September 3rd, 2009

inflation1“Long-term inflation is a given. In the short term, the question is severity. Luckily, there are a few ways for investors to protect their portfolios from its cold hand. Read more…


PIMCO Launching 1-5 Year U.S. TIPS Index Fund (STPZ) TODAY

August 24th, 2009

new1NEWPORT BEACH, CA — 08/24/09 — PIMCO, a leading global investment management firm, has launched the PIMCO 1-5 Year U.S. TIPS Index Fund, a new way to access the firm’s expertise in managing Treasury Inflation-Protected Securities (TIPS). The fund is the first in a lineup of Read more…


Getting More Income From Your ETF Bond Investments

May 11th, 2009

bondsThese are trying times for income oriented investors. Interest rates are still stuck at record low levels which means lower income generated from bonds and other fixed income investments.

U.S. Treasuries with a 10-year maturity are yielding just 3.20%, which isn’t much over the lifetime of the investment, especially after deducting the cost of taxes and any potential for re-inflation. The interest rates being paid by bank certificates of deposit (CDs) is also down. According to, today’s national average 1-year rate for bank CDs is just 2.20%.What can bond investors do?

Bonds, like stocks, come in many different varieties. Government bonds are issued by U.S. or foreign governments, municipal bonds are issued by cities, states and local governments, corporate bonds are issued by companies and there are also asset-backed securities, mortgage backed securities and convertible bonds along with Treasury Inflation Protected Securities (TIPS). Diversifying your bond portfolio is one strategy to gain more income and to reduce market risk.

Let’s briefly evaluate 5 bond ETFs that can help you to generate more income from your bond investments.

iShares Barclays Aggregate Bond Index Fund (NYSEArca: AGG)
The performance and yield of AGG are linked to the widely followed Barclays U.S. Aggregate Bond Index. The index measures the U.S. investment grade bond market, which includes investment grade U.S. Government bonds, investment grade corporate bonds, mortgage pass-through securities and asset-backed securities. With almost $10 billion in assets, AGG is the largest bond ETF and it carries a yield in the vicinity of 4.5%. Year-to-date, AGG has declined 2.09%*. In 2008, AGG gained 5.88% and the fund’s annual expense ratio is 0.24%.

iShares iBoxx $ High Yield Corporate Bond Fund (NYSEArca: HYG)
HYG is benchmarked to the iBoxx $ Liquid High Yield Index, which is designed to provide a balanced representation of the U.S. dollar-denominated high yield corporate bond market through some of the most liquid high yield corporate bonds available. The number of bond issues within HYG is typically 50, although this may change from time to time. The fund has close to $2.13 billion in assets and carries a juicy yield of 11.56%. Year-to-date, HYG has increased by 5.35%. In 2008, HYG fallen 23.86% and the fund’s annual expense ratio is 0.50%.

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