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Thursday, June 13, 2013

It's Usually No" Different This Time"



Among the strategies/products proposed and adopted among many investors in the search for yield have been alternatives to investment grade US dollar bonds in the treasury or corporate bond market.

Here are ETFs of categories that have been high on the "alternatives to generate income" list.and their returns since May 1


EMB and EMLC emerging markets bonds
PFF Preferred stock
PFM Dividend  Achievers Stock ETF
PFF Preferred Stocks
VNQ Reits


The traditional " strategy to insulate a portfolio from rising rates is to shorten maturities. Below are returns the same period for
SHY short term US treasuries
VGSH short term US Govt bonds
VCSH Short term investment grade bonds
SJNK Short term high yield bonds





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