Still, bond ETFs offer investors a practical, simple avenue for proper yield curve positioning.
“Yield curve positioning is a strategy that many institutional investors employ to position for rising rates. But using fixed income ETFs, pretty much any investor can make similar changes to their portfolios. Within different ETFs, investors can now get access to the entire yield curve or just the short maturity portion,” said Matt Tucker, iShares head of fixed income strategy.
Short duration bond ETFs to consider include the iShares Barclays 1-3 Year Credit Bond Fund (NYSEArca: CSJ) and the iShares Barclays 1-3 Year Treasury Bond Fund (NYSEArca: SHY).
iShares Barclays 1-3 Year Treasury Bond Fund
ETF Trends editorial team contributed to this piece. Tom Lydon’s clients own share of SHY.