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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Top 10 Corporate Bond ETFs

#1: iShares iBoxx Investment Grade Bond ETF (LQD)

 

LQD tracks the iBoxx Liquid Investment Grade Index comprising over 600 bond issues. The fund was launched in July 2002. The expense ratio is .15%. AUM (Assets under Management) equal $17 billion and daily trading volume averages 1.5M shares. Over 70% of constituent holdings have maturities between 3-10 years and 35% are within the financial sector. This would be considered moderate and offers less duration risk.  As of mid-January 2012 the annual dividend yield was 3.91% with YTD .66%. One year return was 9.44%.

Data as of First Quarter 2012

LQD Top Ten Holdings & Weightings

  1. At&T 5.5%: 0.70%
  2. At&T 6.55%: 0.68%
  3. Wells Fargo & Co New 5.625%: 0.67%
  4. Wal Mart Stores 6.5%: 0.67%
  5. JP Morgan Chase 6.3%: 0.58%
  6. Verizon  8.75%: 0.58%
  7. Comcast Corp New 6.95%: 0.57%
  8. Credit Suisse New York Branch 5.3%: 0.57%
  9. General Electric 5.625%: 0.56%
  10. Citigroup 8.5%: 0.55%

#2: iShares 1-3 Year Credit Bond ETF (CSJ)

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 clearly virtually eliminating duration risk. Bonds within the holdings are all investment grade. The fund was launched in January 2007. The expense ratio is .20%. AUM is over $9 billion and trading volume averages over 700K shares daily.  As of mid-January 2012 the annual dividend yield was 1.62% and YTD return .12%. The one year return was 1.88%.

Data as of First Quarter 2012

CSJ Top Ten Holdings & Weightings

  1. European Investment Bank 1.5%: 0.94%
  2. Intl Ban For Recon & 1.125%: 0.83%
  3. Kreditanstalt Fur Wiederaufbau 1.875%: 0.79%
  4. European Investment Bank: 0.77%
  5. Citigroup 6.5%: 0.76%
  6. Kreditanstalt Fur Wiederaufbau 2.75%: 0.73%
  7. Intl Bk For Recon & 1.75%: 0.72%
  8. Kreditanstalt Fur Wiederaufbau 1.375%: 0.72%
  9. General Elec 5%: 0.71%
  10. Asian Dev Bk: 0.70%

(NOTE: With recent European sovereign downgrades this pie chart could change soon.)

#3: iShares Barclays Intermediate Bond ETF (CIU)

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. The fund was launched in January 2007. The expense ratio is .20%. AUM equal $4.5 billion with average daily trading volume 346K shares. As of mid-January the annual dividend yield was 2.74% and YTD return .11%. The 1 year return was 5.19%.

Data as of First Quarter 2012

CIU Top Ten Holdings & Weightings

  1. European Investment Bank 1.25%: 0.50%
  2. European Investment Bank 4.625%: 0.47%
  3. Kreditanstalt Fur Wiederaufbau 1.375%: 0.41%
  4. Intl Bank For Recon & 2.125%: 0.34%
  5. Kreditanstalt Fur Wiederaufbau 4.375%: 0.34%
  6. Ontario Prov Canada 2.3%: 0.33%
  7. Cisco Sys 5.5%: 0.31%
  8. JP Morgan Chase 6%: 0.31%
  9. Italy Rep 4.5%: 0.30%
  10. European Investment Bank: 0.28%

(NOTE: Recent sovereign downgrades in European debt will negatively affect credit quality going forward.)

 

#4: Vanguard Short-term Corporate Bond ETF (VCSH)

VCSH 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 shorter term investment horizon and with interest rates this low, fees would matter. The fund was launched in November 2009. The expense ratio is .15% versus .20% for other similar products with yields already low making some difference. AUM equal $2.3 billion and average daily trading volume is 366K shares. As of mid-January 2012 the annual dividend was 2.30% and YTD return .24%. The one year return was 2.79%.

Data as of First Quarter 2012

VCSH Top Ten Holdings & Weightings

  1. General Electric 5.45%: 1.05%
  2. Wells Fargo & Co  4.375%: 0.90%
  3. JP Morgan Chase 3.7%: 0.88%
  4. General Electric 1.875%: 0.83%
  5. Bank of America 4.9%: 0.78%
  6. Citigroup 5.5%: 0.77%
  7. Wells Fargo Co  3.75%: 0.76%
  8. US Treasury Note 1%: 0.70%
  9. Goldman Sachs  3.7%: 0.67%
  10. Verizon Wireless Cap 5.55%: 0.62%

 

#5: iShares Barclays Credit Bond ETF (CFT)

 

CFT follows the Barclays Credit Bond Index which includes dollar denominated corporate and agency debt and have maturities greater than one year. In the top ten holdings you'll note a mix between dollar denominated overseas issues and even a municipal bond issue. The fund was launched in January 2007.The annual expense ratio is .20%. AUM equal $1.1 billion and average daily trading volume is roughly 155K shares. Nearly 75% of current maturities are within 10-years. As of mid-January 2012 the annual yield is 3.27% and YTD return .43%. The one year return was 8.98%.

Data as of First Quarter 2012

CFT Top Ten Holdings & Weightings

  1. European Investment Bank 1.5%: 0.44%
  2. European Investment Bank: 0.42%
  3. JP Morgan Chase 3.45%: 0.39%
  4. Amgen 5.85%: 0.35%
  5. Intl Bank For Recon & 1%: 0.34%
  6. BHP Billiton Fin Usa 6.5%: 0.26%
  7. Goldman Sachs Grp 3.625%: 0.25%
  8. Bank of America 5%: 0.24%
  9. International American Dev Bank 3.875%: 0.23%
  10. General Electric 5.875%: 0.22%

 

(NOTE: Recent sovereign downgrades in European debt will negatively affect credit quality going forward.)

Stock quotes in this article: LQD, CSJ, CIU, VCSH, CFT, VCIT, SCPB 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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