Are bond ETFs good value? (AGG, IEF, LQD, SHY, TLT, TIP)

Includes: AGG, IEF, LQD, SHY, TIP, TLT
by: J.D. Steinhilber

I recently quoted the commentary of J.D. Steinhilber, founder of ETF newsletter and investment management firm Agile Investing, about bond ETFs. He argued that the interest rate spread on long duration government bonds versus short duration bonds is too small, compared to their historical norms, to justify the extra risk; and that corporate bonds are also expensive relative to US Government bonds. Here are the charts behind that analysis; click on any of them to enlarge:




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