The Magic 6%: These 5 Bond ETFs Now Offer Stock-Like Returns As Treasury Yields Jump To Multi-Decade Highs
Portfolio Pulse from Piero Cingari
As Treasury yields soar to multi-decade highs, bond ETFs are offering stock-like returns. Five bond ETFs are now yielding over 6% annually, close to the Dow Jones Index's 30-year annualized return. These include iShares BBB Rated Corporate Bond ETF (LQDB), iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB), iShares iBoxx $ High Yield Corporate Bond ETF (HYG), BondBloxx CCC Rated USD High Yield Corporate Bond ETF (XCCC), and iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB).
August 18, 2023 | 6:38 pm
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POSITIVE IMPACT
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is yielding 7.59% as of Aug. 17, 2023, with a year-to-date return of 2.34%.
The high yield and positive year-to-date return of EMB make it an attractive investment option. This could potentially drive up its price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is yielding 8.53% as of Aug. 17, 2023, with a year-to-date return of 4.75%.
The high yield and positive year-to-date return of HYG make it an attractive investment option. This could potentially drive up its price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB) is yielding 5.97% as of Aug. 17, 2023, with a year-to-date return of 0.17%.
The high yield of IGLB, despite its relatively low year-to-date return, could attract investors seeking long-term investments. This could potentially drive up its price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
iShares BBB Rated Corporate Bond ETF (LQDB) is yielding 5.94% as of Aug. 17, 2023, with a year-to-date return of 1.43%.
The high yield of LQDB, coupled with its positive year-to-date return, makes it an attractive investment option. This could potentially drive up its price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
BondBloxx CCC Rated USD High Yield Corporate Bond ETF (XCCC) is yielding 13.02% as of Aug. 17, 2023, with a year-to-date return of 2.98%.
The high yield and positive year-to-date return of XCCC make it an attractive investment option. This could potentially drive up its price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100