Bond investors can also adapt to the changing market conditions with targeted ETF strategies that lean toward shorter duration securities. For instance, investors interested in short-term corporate bond exposure have a number of investment-grade bond ETF options available, including the iShares 1-3 Year Credit Bond ETF (NYSEArca: CSJ), Vanguard Short-Term Corporate Bond Index (NYSEArca: VCSH) and SPDR Barclays Short Term Corporate Bond ETF (NYSEArca: SCPB).
CSJ tracks short-term U.S. investment-grade credit, including corporate, sovereign, supranational, local authority and non-U.S. agency bonds with remaining maturities between one and three years. The ETF has a larger tilt toward the banking sector and consumer non-cyclical. The fund comes with a 1.48% 30-day SEC yield and a 1.90 year duration.
VCSH also tracks a portfolio of investment-grade corporate bonds with an average maturity of one to five years, with a larger tilt toward industrial and finance. The ETF has a 2.7 year average duration and a 1.97% 30-day SEC yield.
SCPB is comprised of investment-grade corporate debt that have a remaining maturity of one to three years. Sector weights also include large industrial and finance exposures. The ETF has a 1.68% 30-day SEC yield and a 1.82 year duration.
Additionally, there are a number of short-term, investment-grade municipal bond ETF options available. For example, the SPDR Nuveen Barclays Short Term Municipal Bond ETF (NYSEArca: SHM) has a 2.92 year duration and a 1.04% 30-day SEC yield. The VanEck Vectors-Short Municipal ETF (NYSEArca: SMB) has a 2.85 year duration and a 1.17% 30-day SEC yield. The iShares Short Term National AMT-Free Muni Bond ETF (NYSEArca: SUB) has a 1.89 year duration and a 0.84% 30-day SEC yield.
For more information on the fixed-income market, visit our bond ETFs category.