Bond Exchange-Traded Funds Are Gaining Momentum

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 has increased more than tenfold, from just six funds in 2006 to 67 in early September. “Although they don’t get as much attention as equity ETFs, [bond ETFs] have really come on strong lately with more ETF providers,” says Tom Lydon, editor of the blog ETF Trends. Another force driving the popularity of bond ETFs: Investors, looking for more diversification after suffering steep losses in 2008, are moving into more asset classes within the bond market, says James Ross, senior managing director of State Street Global Advisors,”  Rebecca Kern Reports From US NEWS.

The article goes into detail about the ins and outs of bond ETF’s including drawbacks and how they are a timely investment.   SEE FULL STORY: HERE

Here are the five bond ETFs with the largest asset inflows from Jan. 1 to Sept. 16, 2009:

iShares Barclays TIPS Bond (TIP) $6,601,315,000
iShares iBoxx $ Investment Grade Corporate Bond (LQD) $5,319,490,000
iShares Barclays 1-3 Year Credit Bond  (CSJ) $2,594,390,000
Vanguard Total Bond Market ETF (BND) $2,174,404,000
iShares iBoxx $ High Yield Corporate Bond (HYG) $1,716,495,000



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