Related: Bond Market Moves on Quickly Following Midterm Elections

Investment-Grade Bond ETFs Tick Higher

Investment-grade bond ETFs like the iShares 1-3 Year Credit Bond ETF (NASDAQ: CSJ) and Xtrackers Inv Grd Bd Intst Rt Hdg ETF (BATS: IGIH) ticked higher. CSJ ticked up to 0.03% and IGIH rose 0.63%.

CSJ tracks the investment results of the Bloomberg Barclays U.S. 1-3 Year Credit Bond Index where 90 percent of its assets will be allocated towards a mix of investment-grade corporate debt and sovereign, supranational, local authority, and non-U.S. agency bonds that are U.S. dollar-denominated and have a remaining maturity of greater than one year and less than or equal to three years–this shorter duration is beneficial during recessionary environments.

IGIH seeks investment results that track the performance of the Solactive Investment Grade Bond – Interest Rate Hedged Index where a portion IGIH’s total assets will reside in long positions in U.S. dollar-denominated investment-grade corporate bonds. As in the case of IGHG, this strategy effectively eliminates exposure to riskier bonds with fund allocations in investment-grade issues.

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