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

Top 10 Corporate Bond ETFs

#6: Vanguard Intermediate Term-Corporate Bond ETF (VCIT)

 

VCIT tracks the Barclays Capital U.S. 5-10 Year Corporate Bond Index. The fund was launched in November 2009. The expense ratio is .15%. AUM equal $1 billion while average daily trading volume is 109KK shares. As of mid-January 2012 the annual yield was 3.86% and YTD return .49%. The one year return was 8.66%.

Data as of First Quarter 2012

VCIT Top Ten Holdings & Weightings

  1. CMT Market Liquidity Rate: 1.71%
  2. General Electric 6%: 1.06%
  3. Morgan Stanley 5.5%: 0.85%
  4. At&T 5.5%: 0.79%
  5. Goldman Sachs 6.15%: 0.71%
  6. Morgan Stanley 5.45%: 0.71%
  7. Wells Fargo & Co New 5.625%: 0.68%
  8. Verizon Communications 5.5%: 0.63%
  9. American International Group 6.4%: 0.58%
  10. Bank of America 5.65%: 0.58%

 

#7: SPDR Barclays Capital Short-term Bond ETF (SCPB)

SCPB follows the Barclays Capital U.S. 1-3 Year Corporate Bond Index. The Barclays Capital U.S. 1-3 Year Corporate Bond Index is designed to measure the performance of the short term U.S. corporate bond market. The Index includes publicly issued U.S. dollar denominated corporate issues that have a remaining maturity of greater than or equal to 1 year and less than 3 years, are rated investment grade (must be Baa3/BBB- or higher. The fund was launched in December 2009. The expense ratio is a low .12%. AUM equal $397M while average daily trading volume is 106K shares. As of mid-January 2012 the annual dividend yield was 1.74% and YTD return .90%. The one year return was 1.98%.

Data as of First Quarter 2012

SCPB Top Ten Holdings & Weightings

  1. General Electric 4.8%: 1.01%
  2. Citigroup 5.5%: 0.80%
  3. Cs First Boston 5%: 0.79%
  4. General Electric 5%: 0.75%
  5. Goldman Sachs 5.25%: 0.75%
  6. Wachovia Corp 5.5%: 0.75%
  7. Citigroup 6.5%: 0.72%
  8. Citigroup 5%: 0.69%
  9. Morgan Stanley 6%: 0.68%
  10. BP Capital 5.25%: 0.65%

#8: SPDR Barclays Capital Intermediate Term Bond ETF (ITR)

ITR tracks the Barclays Capital Intermediate U.S. Corporate Index. The index includes dollar denominated debt from U.S. and non-U.S. industrial utility and financial institutions with less than 10 year durations. The fund was launched in February 2009. The expense ratio is .15%. AUM equals $222M and the average daily trading volume is 45K shares. As of mid-January 2012 the annual dividend yield was 3.39% and YTD return .72%. The one year return was 5.22%.

Data as of First Quarter 2012

ITR Top Ten Holdings & Weightings

  1. General Electric 4.8%: 1.02%
  2. American Express 7.25%: 0.64%
  3. Morgan Stanley 3.45%: 0.63%
  4. Goldman Sachs Grp 5.95%: 0.61%
  5. Bear Stearns Cos 7.25%: 0.57%
  6. Morgan Stanley 4.75%: 0.56%
  7. Comcast Corp New 5.7%: 0.54%
  8. Merrill Lynch Co Inc Mtn Be 6.875%: 0.52%
  9. Morgan Stanley 5.625%: 0.52%
  10. American International Group 5.85%: 0.51%

 

 

Vanguard Long-term Corporate Bond ETF (VCLT)

VCLT tracks the Barclays Capital U.S. Long Corporate Index which is investment grade, dollar denominated with maturities greater than 10 years. The fund was launched in November 2009. The expense ratio is .15%. AUM equal $400M and average daily trading volume is roughly 56K shares. As of mid-January 2012 the annual dividend yield is 4.58% and YTD return .44%. The one year return is 18.60%.

Data as of First Quarter 2012

VCLT Top Ten Holdings & Weightings

  1. CMT Market Liquidity Rate: 1.58%
  2. General Electric 6.75%: 1.22%
  3. AT&T 8%: 1.14%
  4. Pfizer 7.2%: 0.93%
  5. Wal Mart Stores 6.5%: 0.90%
  6. Comcast Corp New 6.95%: 0.79%
  7. AT&T 6.8%: 0.76%
  8. Goldman Sachs  6.75%: 0.75%
  9. Deutsche Telekom  8.75%: 0.73%
  10. Shell International Finance 6.375%: 0.69%

#10: Pimco Investment Grade Corporate Bond ETF (CORP)

CORP tracks the Bank of America/Merrill Lynch U.S. Corporate Index with dollar denominated investment grade issues with maturities greater than one year. The fund was launched in September 2010. The expense ratio is .20%. AUM equal $187M with average daily trading volume of around 7K shares. One unique feature of CORP is that it rebalances its holdings monthly which might be a tax consideration for some investors. As of mid-January 2012 the annual dividend yield was 3.45% and YTD return 2.15%. The one year return was 7.31%.





















 

As the Fed continues to maintain a low interest rate policy while stock markets have been uncertain and volatile investors have flocked to bonds. To this observers must also take into account changing demographics which reflect an aging U.S. population demanding less risk and more yield on their investments. At some point investors may realize that yields, particularly for longer term issues will not exceed inflation and purchasing power. Once these facts dawn on investors, they'll seek higher returns elsewhere. For now however, the trend is your friend.

It's also important to remember that ETF sponsors have their own competitive business interests when issuing products which may not necessarily align with your investment needs. New ETFs from highly regarded and substantial new providers are also being issued. These may include Charles Schwab's ETFs and Scottrade's Focus Shares which both are issuing new ETFs with low expense ratios and commission free trading at their respective firms. These may also become popular as they become seasoned. 

For further information about portfolio structures using technical indicators like DeMark and other indicators, take a free 14-day trial at ETF Digest . Follow us on Twitter and Facebook as well and join our group conversations.

You may address any feedback to: feedback@etfdigest.com   

The ETF Digest has no current positions in the featured ETFs.

(Source for data is from ETF sponsors and various ETF data providers)

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Dave Fry is founder and publisher of ETF Digest, Dave's Daily blog and the best-selling book author of Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management, published by Wiley Finance in 2008. A detailed bio is here: Dave Fry.

3 of 3

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
CFT $111.01 0.31%
CIU $110.05 0.00%
CSJ $105.56 0.00%
LQD $118.22 0.00%
SCPB $30.66 0.00%

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs