Do Fixed Income ETFs Really Behave Like Bonds?

CREATING AN INCOME BAR-BELL

ETFs have democratized access to fixed income, but at the same time they also lost the two most important covenants of bonds: that it will have a maturity date and a consistent coupon/yield.

Even worse, these products, as evidenced by the November 2016 performance, are still subject to duration risk.

A solution I have employed for many years is the income bar-bell which can produce a consistent yield and mitigate volatility.
THINKING ABOUT FIXED INCOME INVESTING
It is important to think more about your intended outcome rather than the past performance of the indexes.
WANT A CONSISTENT YIELD?
We believe investors seeking consistent yield would be best served through a custom bar-bell strategy.
MATURING BOND ETF
For investors seeking a bond ETF that truly matures the only ETF that actually provides this exposure is the PowerShares Build America Bond ETF (BAB) as mentioned on ETF.com. 

Learn here how to create an income bar-bell.

 

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