Bond ETFs

The Beta Investment Report: U.S. Bond ETFs

[On] the short list of investment-grade U.S. bond funds that cover the waterfront in this corner of the capital markets.

The first point to note is that the short list really is short. That’s partly because there’s only a handful of ETFs that cover the broad spectrum of investment-grade bonds in the U.S. in one fell swoop. We’re talking here of Treasuries, government agencies, corporates, and a small amount of international dollar-denominated bonds (inflation-protected Treasuries and munis are excluded, however). We’re also limiting the choices to market-cap weighted benchmarks exclusively in the ETF space. That leaves us with four choices, as shown in the table
Comment: The absolute easiest way to invest in bonds is through a Bond ETF. We have investments in both BND and AGG. Neither are exciting (like an IBM) but they are stable.

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