Thursday, March 26, 2009

Looking for Corporate Bond exposure for your portfolio, but want to use a simple ETF; here are some choices...





iShares iBoxx $ Invest Grade Corp Bond (LQD)

The investment seeks investment results that correspond generally to the price and yield performance of a segment of the U.S. investment-grade corporate bond market as defined by the iBoxx $ Liquid Investment-Grade index. The fund typically invests at least 90% of assets in the bonds of the underlying index, and at least 95% of assets in investment grade corporate bonds. It may also invest in bonds not included in the underlying index. The fund may also invest up to 5% of assets in repurchase agreements collateralized by U.S. government obligations, and in cash and cash equivalents. It is nondiversified.

iShares iBoxx $ High Yield Corporate Bd (HYG)

The investment seeks to replicate the performance, net of expenses, of the iBoxx $ Liquid High-Yield index. The fund invests at least 90% of assets in securities that comprise the index. However, it may invest up to 20% of assets in certain futures, options and swap contracts, cash and cash equivalents, and in bonds not included within the index. The index is a rules-based index consisting of the most liquid and tradable U.S. dollar-denominated, high-yield corporate bonds for sale in the U.S. The fund is nondiversified.

SPDR Barclays Capital High Yield Bond (JNK)
The investment seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Lehman Brothers High Yield Very Liquid index. The fund normally invests at least 80% of total assets in securities that comprise its benchmark index. It may also invest its other assets in securities not included in its benchmark index. The fund is nondiversified.

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