Equity exchange traded funds (ETFs) are one of the up and coming investment strategies. Cost efficiency is the main attraction. With low annual expense ratios and hardly any capital gains exposure, ETFs can be rewarding.
However, bond ETFs have been a bit slow in coming, currently Barclays offers the only fixed income ETFs and there are only six available. Bond ETFs can play a role in your ETF portfolio. Ben Warwick writes in Investment Advisor, in terms of performance, less than 10% of the actively managed intermediate bond funds beat the Lehman Aggregate, during a ten year period.
iShares Lehman Aggregate (AGG) is up 4.7% year-to-date, which is on par with the Lehman Aggregate at 5%.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.