ETF investors can gain broad exposure to investment-grade debt through a number of options.
For instance, ETF investors can choose from a number of Treasury bond-related funds, including the iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF), Schwab Intermediate-Term U.S. Treasury ETF (NYSEArca: SCHR), Vanguard Intermediate-Term Government Bond ETF (NYSEArca: VGIT) and SPDR Barclays Intermediate Term Treasury ETF (NYSEArca: ITE). IEF has a 1.63% 30-day SEC yield, SCHR has a 1.34% 30-day SEC yield, VGIT has a 1.36% 30-day SEC yield and ITE has a 1.11% 30-day SEC yield.
For a little more income generation, investors can loook to investment-grade corporate bond exposure, including the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD), Vanguard Intermediate-Term Corporate Bond ETF (NYSEArca: VCIT) and SPDR Barclays Intermediate Term Corporate Bond ETF (NYSEArca: ITR). LQD has a 3.73% 30-day SEC yield, VCIT has a 3.58% 30-day SEC yield and ITR has a 2.91% 30-day SEC yield.
Fixed-income investors can also consider broadly diversified bond ETFs that hold a basket of various investment-grade debt. For instance, the iShares Core U.S. Aggregate Bond ETF (NYSEArca: AGG) is one of the largest, cheapest and most liquid ETFs that tracks the widely observed Barclays US Aggregate Bond Index, which include investment-grade Treasuries, pass-through MBS, industrials, financials, agency, utilities and CMBS. AGG has a 2.07% 30-day SEC yield.
Max Chen contributed to this article.