Current yield is listed as 4.31% and investors may simply be looking for higher yield potential than longer dated U.S. Treasuries, which have been mired in the 2% range for quite some time, and are willing to accept company specific risk that is associated with corporate bond issues as a trade-off.
Other ETFs that are in the short term corporate bond space include iShares Barclays Capital U.S. 1-3 Year Credit Bond Index (NYSEArca: CSJ), although CSJ also owns non-corporate issues such as sovereign, supranational, and agency bonds, and Vanguard Short Term Corporate Bond (NYSEArca: VCSH).
These all have seen greater than average trading activity recently as well. Year to date, VCSH has rallied 1.59%, SCPB is up 1.30%, and CSJ is up 0.60%.
SPDR Barclays Capital Short Term Corporate Bond
For more information on Street One ETF research and ETF trade execution/liquidity services, contact [email protected].
