Japanese Investors on a U.S. Bond Shopping Spree

Oshikubo also cites upside in the U.S. dollar as trade wars continue between the U.S. and China. U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to meet later this month at the G-20 Summit in Buenos Aires.

Pre-Thanksgiving Flight to Bonds

In the meantime, U.S. investors have been fleeing to bonds as pre-Thanksgiving stock market declines have caused the Dow Jones Industrial Average to shed 3% the last five days. For investors beginning their journey into bond ETFs, short-term investment-grade exchange-traded funds (ETFs) would be a prime place to start like the iShares 1-3 Year Credit Bond ETF (NASDAQ: CSJ).

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.

Related: Options Bears Target Retail ETF

For more market trends, visit ETF Trends.