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

4 Best Bond ETFs to Avoid the Bubble

NEW YORK ( TheStreet) -- The spike in long-term U.S. Treasury yields has many investors believing the bond bubble has finally popped. But there's still money to be made in bonds and bond ETFs.

TheStreet searched for the best bond ETF ideas with Tom Lydon, editor of ETF Trends, and Christian Magoon, CEO of Magoon Capital.

SPDR Barclays Capital High Yield Bond ETF (JNK)

High-yield, or junk, bonds are a good place to find steady yield during a low-interest-rate environment. Lydon says the SPDR Barclays Capital High Yield Bond ETF is a good place for investors seeking those elevated yields, provided they can handle the extra risk. The fund normally invests at least 80% of total assets in securities that comprise its benchmark index. At last check, the yield on JNK was 9.7%.

"Now is a great time for corporations because liquidity is returning to the markets, default rates are dropping and they are sitting on nearly $2 trillion in cash. An improving environment coupled with yields that remain handsome make high-yield corporate debt an appealing destination if you don't mind the risks," says Lydon.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

1 of 4

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
SYM TRADE IT LAST %CHG
EMLC $20.42 0.00%
TBT $48.30 -3.00%
MINT $101.28 -0.07%
JNK $39.35 0.15%
AAPL $132.22 1.70%

Markets

DOW 18,254.71 -31.03 -0.17%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs