The Best Fixed-Income Investment
Bank CDs, not funds, currently offer a better bang for your buck.
ETF Specialist
Mentioned: General Electric Co (GE)
, PIMCO Enhanced Short Maturity Active ETF (MINT)
, PIMCO Active Bond ETF (BOND)
, iShares Short Maturity Bond ETF (NEAR)
, AdvisorShares Newfleet Mult-Sect Inc ETF (MINC)
, SPDR® Blmbg Barclays 1-3 Mth T-Bill ETF (BIL)
, Vanguard Short-Term Bond ETF (BSV)
A version of this article will be published in the June 2014 issue of Morningstar ETFInvestor. Download a complimentary copy here.
There were 31 short-term bond exchange-traded funds with a combined $60.9 billion in assets as of the end of May. They offer yields ranging from nil, in the case of SPDR Barclays 1-3 Month T-Bill (BIL), to more than 2%, in the case of AdvisorShares Newfleet Multi-Sector Income (MINC). The biggest, Vanguard Short-Term Bond ETF (BSV), yields a little more than 1%. A few, like PIMCO Enhanced Short Maturity ETF (MINT) and iShares Short Maturity Bond (NEAR), step into the gap created by tighter money market fund rules.
Samuel Lee does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.