Another prediction from S&P Capital is further growth in the fixed income ETF space. The hunt for yield at a low cost will continue. The PIMCO Total Return ETF (NYSEArca: BOND), iShares Core Total Return US Bond Market (NYSEArca: AGG) and Vanguard Total Bond Market Index Fund (NYSEArca: BND) will enjoy continued success in 2013. [Investors Come Out on Top of ETF Fee War]

The low cost structure of an ETF, along with the transparency and exposure to key investment themes will continue to bolster this industry in 2013.

Tisha Guerrero contributed to this article.

Full disclosure: Tom Lydon’s clients own BOND.

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