“The tide is turning,” said Komal Sri-Kumar, president of Sri-Kumar Global Strategies. “The fact the 10-year yield is falling so sharply after the massive correction on Tuesday—we don’t even have a dead cat bounce—says there’s a lot more pain ahead for equities.”
Related: Top 56 High Yield Bond ETFs
Other Bond ETF Options to Look At
Other ETFs to consider, particularly with respect to shorter duration, include the SPDR Portfolio Short Term Corp Bd ETF (NYSEArca: SPSB ) , which seeks to provide investment results that correspond to the performance of the Bloomberg Barclays U.S. 1-3 Year Corporate Bond Index. SPSB invests at least 80 percent of its total assets in securities designed to measure the performance of the short-termed U.S. corporate bond market. Ideally, shorter-term bond issues with maturities of three to four years are ideal to minimize duration exposure should the bull market enter a correction phase.
Another short-term bond ETF option is the iShares 1-3 Year Credit Bond ETF (NASDAQ: CSJ ) , which 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.
For more trends in fixed income, visit ETF Trends .
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