ETF Trends
ETF Trends

In August the yield of the S&P/BGCantor Current 10 Year U.S. Treasury Index dropped by 23 basis points from 2.56% to 2.33% where it closed out the month.  Holding the 10-year alone returned 2.19% for the month and has returned 8.42% year-to-date on a total rate of return basis.

TIPS or Treasury Inflation Protection Securities also have performed well year-to-date.  The return of the S&P 10 Year U.S. TIPS Index for the year has returned 8.69%.  June and July were slow for the 10-year TIPS but August picked up in performance returning 0.61%.

U.S. investment grade corporate bonds as measured by the S&P U.S. Issued Investment Grade Corporate Bond Index returned 1.38% for August and have returned 7.05% year-to-date.  The pace of return is similar to 2012 when the index returned 8.86%.  When comparing the rating segments of the index, AAA bonds returned 1.70% for the month, the same return as BB bonds.  Year-to-date these bonds have returned 8.01%.

The S&P U.S. Issued High Yield Corporate Bond Index had a strong August returning 1.47% for the month.   August’s return makes up for the -1.31% performance in July and is second to the February rally of 1.92% though not enough to outpace investment grade year-to-date.


This article was written by Kevin Horan, director fixed income indices, S&P Dow Jones Indices.

© S&P Dow Jones Indices LLC 2013. Indexology® is a trademark of S&P Dow Jones Indices LLC (SPDJI). S&P® is a trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a trademark of Dow Jones Trademark Holdings LLC, and those marks have been licensed to SPDJI. This material is reproduced with the prior written consent of SPDJI. For more information on SPDJI, visit