Once again we've chosen to keep the list to 10 although other competitors are mentioned frequently. All of this is a matter of choice for any investor. These lists remain long and sometimes quite repetitive as components vary little one to another. The real choice here is maturity selection or what duration risk are you willing to assume. The longer out the curve you go the greater the return and risk to principal.
As a former bond principal I'm really not in favor of bonds now. It may be I suffer from the "the closer you are to something, the less you like it" syndrome. Nevertheless, yields are skimpy and risks from budding inflation high with longer maturities. With shorter maturities you do little better than yields from the bank after headline inflation. So, given the environment with many uncertainties "cash" from money market funds and/or T-Bills is just fine for now.
I'm not particularly impressed with the inflation calculations for most U.S. bond issues believing there's very little real protection when the inflation component is flawed. That said, we are long some of these issues because as trend-followers that's what we do.
Remember, many institutions (insurance companies, pension plans and many asset allocation models) call for large bond allocations. Some insurance companies may only own bonds given their actuarial table requirements. If you're an individual investor you're not under the same pressures no matter what you hear in the media.Further previous non-correlations of bonds to stocks for example have been whittled away given current monetary policies of the Fed. This only adds to risks already mentioned. If you must buy them, our bias generally is to more liquid issues unless we utilize them in Lazy portfolio approaches. Just always remember ETF sponsors must issue and many times their interests aren't aligned with yours. They have a business interest and wish to have a competitive presence in any popular sector. For further information about portfolio structures and trading information including DeMark technical indicators using ETFs see www.etfdigest.com. You may address any feedback to: email@example.com You can follow our pithy comments on twitter and become a fan of ETF Digest on facebook The ETF Digest has current positions in SHY and IEF. (Source for holding data is from various sponsor websites and other ETF data providers.)
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV