This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fixed-Income ETFs Attracting Investors

Fixed-income ETFs have expanded their ranks and attracted new investor interest -- iShares Barclays TIPS Bond (TIP) and iShares iBoxx $ Investment Grade Corporate Bond Fund (LQD) are helping protect investors from inflation and provide them with riskier bets.

The ETF industry broke records in the month of July, boasting a worldwide high of $862 billion in assets under management. In the U.S., 706 ETFs from 22 providers have attracted $582 billion as of July 31. National Stock Exchange Data shows that fixed-income ETFs accounted for 86 billion in assets at the end of July.

TIP and LQD are the top two biggest asset gatherers for ETF giant iShares in 2009. Year-to-date, both funds have attracted more than 5 billion in assets.

The corporate bond market has improved dramatically in 2009 as investors regain their appetites for risk. As the spread between Treasuries and corporate bonds tightened, investors looked for ways to get involved in the upswing. Investors have been using funds like the SPDR Barclays Capital High Yield Bond ETF (JNK) ETF to participate in the surging corporate-debt tide.

Funds like LQD and the aptly named JNK take some of the pressure out of corporate bond investing. Since the funds invest in a portfolio of bonds, investors can access greater liquidity than can be found in markets for single bond issues. Credit risk is still a concern, but having it spread over a portfolio of creditors is less risky than having to depend on one.

On the other side of the spectrum, some investors continue to worry that increased government spending will ultimately result in inflation. TIP invests in inflation-protected securities to protect investors from inflation fears. This fund is an inexpensive way to protect against these concerns and the credit risk on these securities is essentially zero.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TUZ $50.91 -0.22%
TIP $111.92 -0.56%
SHY $84.72 -0.15%
JNK $37.68 0.03%
INP $72.19 0.73%

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs