Increased Volatility is Fueling an Appetite for Bonds

“We’ve seen a lot of flows into short duration bonds–both active and passive ETFs in that area,” said ETF Trends Publisher Tom Lydon on “Mornings with Maria” on the Fox Business Channel.

Examples of short duration ETFs that investors can consider 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. Another 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.

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