This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Top 10 Corporate Bond ETFs: Pros vs. Cons

9. iShares 1-3 Year Credit Bond ETF (CSJ) tracks the Barclays Capital U.S. 1-3 year Credit Bond Index, which includes corporate and sovereign debt and non-U.S. agency bonds. The bonds held are shorter-term in duration, virtually eliminating duration risk. Bonds within the holdings are all investment grade. AUM is more than $8 billion and trading volume averages more than 475,000 shares daily.

YTD market return through May 2011 has been 1.18%, while the yield is roughly 2.29%.

CSJ Top Ten Holdings (Interest, Weighting)

  1. Kreditanstalt Fur Wiederaufbau 1.875%: 0.90%
  2. Citigroup 6.5%: 0.90%
  3. European Investment Bank 1.625%: 0.87%
  4. General Electric 5%: 0.81%
  5. International Bank For Reconstruction 1.75%: 0.80%
  6. Kreditanstalt Fur Wiederaufbau 1.375%: 0.80%
  7. Kreditanstalt Fur Wiederaufbau 3.5%: 0.72%
  8. European Investment Bank 1.25%: 0.71%
  9. CS First Boston New York 5%: 0.62%
  10. Kreditanstalt Fur Wiederaufbau 1.375%: 0.62%

8. iShares Barclays Intermediate Bond ETF (CIU) follows the Barclays Intermediate Credit Bond Fund Profile, which consists of investment grade bonds with maturities of greater than one year but less than 10 years. CIU has AUM of roughly $3.4 billion with average daily trading volume of just less than 200,000 shares.

CIU has a yield of approximately 4% and has returned 2.55% through May 2011.

CIU Top Ten Holdings

  1. European Investment Bank 4.625%: 0.67%
  2. International Bank For Reconstruction 2.125%: 0.47%
  3. Kreditanstalt Fur Wiederaufbau 4.375%: 0.47%
  4. Cisco Systems 5.5%: 0.46%
  5. Italy Republic 4.5%: 0.45%
  6. European Investment Bank 2.75%: 0.38%
  7. General Electric Capital Corp 2.8%: 0.38%
  8. Citigroup 5.5%: 0.35%
  9. AT&T 2.5%: 0.33%
  10. International Bank For Reconstruction 2.375%: 0.33%

7. Vanguard Short-term Corporate Bond ETF (VCSH - Get Report) also tracks the Barclays Capital U.S. 1-5 Year Corporate Index, which includes U.S. dollar-denominated, investment-grade securities. Vanguard, in general, would like to compete with similar offerings based on lower fees. And, if you're an investor with a long-term investment horizon and with interest rates this low, fees could matter. VCSH's expense ratio of .15%, versus .20% for other similar products, is possibly more appealing. AUM equals $1.5 billion and average daily trading volume is roughly 160,000 shares.

Through May 2011 YTD return has been 1.79% with a yield of 2.33%.

VCSH Top Ten Holdings

  1. General Electric Capital Corp 5.45%: 1.77%
  2. Wells Fargo Corp 3.75%: 1.11%
  3. Morgan Stanley 5.3%: 0.91%
  4. Goldman Sachs Group 3.625%: 0.90%
  5. CS First Boston New York 5%: 0.89%
  6. Citigroup 5.5%: 0.77%
  7. Goldman Sachs Group 5.25%: 0.73%
  8. Bank Of America Corp 6.25%: 0.70%
  9. AT&T 4.95%: 0.68%
  10. JP Morgan Chase 4.75%: 0.66%

2 of 5

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CFT $111.01 0.31%
LQD $120.42 0.00%
CIU $109.93 -0.06%
CSJ $105.22 -0.01%
CORP $103.35 -0.15%

Markets

DOW 18,198.72 -89.91 -0.49%
S&P 500 2,107.97 -9.42 -0.44%
NASDAQ 4,979.90 -28.1960 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs