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With the rapid growth of ETF’s and because of their superiority to mutual funds, fixed income ETF’s are gaining ground on other categories as they are a much cheaper alternative than what is currently available. That being said, they are still fairly new and there will be many more options made available in the coming months. But I decided to take a look at the current top bond ETF’s, see what type of fees are being charged and what is available.
1-Different types: It is surprising to see how many treasury funds are available, they seem to form the majority of what is currently offered. There are also some inflation protected bonds, and a variety of corporate bonds.
2-Fees: Fees start off at .11% for BND, a Vanguard ETF that tracks the total bond market. I will need to do more research but this one looks to be the most interesting with such low fees. On the higher end, ProShares offers a 20 year treasury fund which costs almost 1% annualy (.95%), which is surprising since TLT (from Ishares) offers the same thing more or less for .15%!
3-Returns: In a year where stocks have been up and down, it has been a similar story for bond ETF’s and they have in fact all performed between -2,74% and 1.37%, a very narrow spread.
So without further wait, here are the top US Bond ETF’s by market cap:
Ticker Name Price Dividend Yield Payout Ratio Ex-DVD EPS 5Y Growth DVD 5Y Growth Sales 5Y Growth
NE Noble Corp plc 27.47 5.46 25.2 11/6/2014 24.63 45.05 9.14
NU Northeast Utilities 45.44 3.46 59.45 9/11/2014 32.54 10.44 8.7
CVX Chevron Corp 127.54 3.36 34.89 11/19/2014 46.25 9.5 9.6
Do any of these interest you??? Do you own any of these?
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Can you put market cap easier to analyze? Thanks!
Good post. I just discover your blog. It’s pretty awesome that you have such lists!
There is one bond ETF that I own:
iShares Barclays 3-7 Year Treasury Bond Fund (for its mid-term horizon)
There is one bond ETF that I am interested in:
iShares Barclays TIPS Bond Fund (for its protection against inflation)
And you, which ones are you interested and which ones do you own? Thanks for sharing.
With interest rates about to raise the only bond funds I will touch right now are short duration and for right now managed high yield funds. I think High yield has 6-18 months left and I will be out of them.
Daddy Paul, don’t you think short duration are really volatile? Better not touch long term bond though. Rates are way too low for the moment!
@John – This is improved in posts now, thanks for the comments, I am now rounding by millions which makes it easier to see
@Andrew – I am actually unsure, I am probably looking to buy a high yield fund for now, I’m maybe a little late for the trade, but there still seems to be gains in there
@ Daddy Paul – Do you anticipate that rates will move up quickly? I just don’t see it happening in the US…will probably take a while longer
Great post. Thanks for the numbers. Is there a site I can go to to see a quarter by quarter breakdown of the amount of money flowing into Bond ETFs?