The best-selling bond ETF of last year was the iShares Barclays TIPS Bond Fund (NYSEArca: TIP), which invests in Treasury Inflation-Protected Securities (TIPS). TIP adjusts the principal upward based on increases in the U.S. Consumer Price Index. The fund has more than $20 billion in total assets. [How TIPS Work.]
The spread between corporate bonds and Treasurys have contracted to about 2% as investors flocked back to corporate bonds to take advantage of prices they thought were bargains. The iShares iBoxx $ Investment Grade Corp Bond ETF (NYSEArca: LQD) gained 30% in the last 18 months and has more than $12 billion in assets. [Bond ETFs: When It’s Time To Buy.]
For more information on bonds, visit our bond ETFs category.
Max Chen contributed to this article.