The WSJ points out that bond ETFs such as iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD) have seen big inflows in recent years along with fixed-income mutual funds.
LQD has had a five-year annualized gain of 8.29% versus 1.05% for the S&P 500. “Just don’t expect that gift to keep on giving,” Jakab writes.
The corporate debt fund is the top selling bond ETF in 2012 with net inflows of $6.9 billion year to date, according to IndexUniverse.
Other bond ETFs include:
- iShares Barclays 7-10 Year Treasury Bond Fund (NYSEArca: IEF): up 3.7% year-to-date; 1.26% 30-day SEC yield
- iShares Barclays 20 Year Treasury Bond ETF (NYSEArca: TLT): up 3.3% year-to-date; 2.68% 30-day SEC yield
- SPDR Barclays Capital High Yield Bond ETF (NYSEArca: JNK): up 13.3% year-to-date; 5.42% 30-day SEC yield
- PIMCO Total Return Exchange-Traded ETF (NYSEArca: BOND): up10.1% since inception; 2.17% 30-day SEC yield
- iShares S&P National Municipal Bond ETF (NYSEArca: MUB): up 5.1% year-to-date; 1.51% 30-day SEC yield
For more information on the bonds market, visit our bond ETFs category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own TLT, LQD, JNK and BOND.