Bond ETF Portfolios
As more bond ETFs have been created, it is increasingly possible to construct a more sensible bond ETFs based portfolio. Let’s first look at total return bond ETFs.
Total Return Bond ETFs
We reviewed two important total return bond ETFs in a previous newsletter March 2, 2015: Total Return Bond ETFs. As we stated in the newsletter, we are excited to see that more actively managed bond ETFs are coming to market. We are especially interested in those ETFs that are managed by same or similar fund managers who manage one of our total return bond candidate mutual funds (to qualify, the managers should be a recipient of Morningstar Fixed Income Manager of the Year award at least once). As stated, these ETFs, if perform right, can be very useful to construct a total return bond ETFs portfolio that is free of mutual fund restriction (such as minimum holding periods imposed by brokerages and mutual funds themselves). Furthermore, in general, these ETFs have lower expense ratios for smaller amount investments (refer to the previous newsletter).
The two ETFs performance (as of 2/12/2016):
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