14 Best Performing Bond ETFs

by: Richard Shaw

There are 14 bond ETFs that have a trailing yield of 4% or more, and that have positive 3-year and 1-year price returns, and no more than a 1% negative 1-month price return. There are 11 if the 1-month price return criterion is set to positive as well.

Here they are (click image to enlarge):

They include high yield (junk) bond funds, municipal bond funds, an emerging markets bond fund, long-term U.S. investment grade bond funds, and inflation protected bond funds (both US domestic and world).

The lowest 1-year total return was just under 8% and the highest 1-year total return was nearly 30%.

Note that no other criteria were applied for this list, such as trading volume, bid-ask spreads, expense ratios, asset size, credit quality, number of holdings, currency exposure, duration, and other risk factors relating to potential interest rate rises. You will want to consider such things.

We own HYG (junk) from the list above, plus some other actively managed bond mutual funds in the emerging markets, municipal bonds and investment grade US corporates categories.

Disclosure: QVM has long positions in HYG and does not have positions in any other mentioned security as of the creation date of this article (December 16, 2011).

Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on the QVM site available here.

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