Investors willing to sacrifice yield for the benefits of higher credit quality, less energy exposure and lower duration can consider the $3.76 billion SPDR Barclays Short Term Corporate Bond ETF (NYSEArca: SCPB).
That ETF has a smaller 7.5% energy weight and with about 70% of its holdings rated Aa or A, SCPB’s 30-day SEC yield is just 1.15%. SCPB’s modified adjusted duration of just 1.86 years has been the story for the ETF this year as investors have poured $832.4 million of new money into the fund. [Room for Bond ETF Market Growth]
SPDR Barclays Short Term High Yield Bond ETF
Tom Lydon’s clients own shares of JNK.