Of course, the answer depends on what role you see fixed income playing in your portfolio, but for investors who are looking for a way to seek more income within the foundation of their fixed income allocation, BYLD may be a good fit.
It provides diversification across a number of individual iShares funds, has a holdings tilt that is focused on yield, and is designed to deliver risk that is consistent with the broader fixed income market, all in a single ticker.
For more on the fixed income sectors we like, including tax-exempt bonds, see Russ K’s latest Investment Directions monthly market commentary.
1Morningstar Inc. and Bankrate.com as of 12/31/13. Asset-weighted average yield for Taxable Money Market, 6-month CD, US Core Bond, 10-Year Treasury, and High Yield Bond Morningstar categories.
2The fund may invest up to 20% of its assets in other investment products.