ETF Daily News
thinks target maturity ETFs are underrated. The target fund setup is perfect for the long-term trader because the investor only loses in nominal terms if the fund if there is a widespread default on the underlying bonds or it's is sold before maturity in a rising rate environment.
ETFDN suggests iShares [profile]
2013 S&P AMT-Free Municipal Bond Series ETF all the way through 2018 and iShares 2016 to 2023 Investment Grade Corporate ex-Financials term ETF.
He also suggests Guggenheim[profile] BulletShares
target maturity corporate bond funds and high yield bond funds.
Take advantage soon before higher interest rates kick in.:
"Higher rates are not an “if” but a “when.” As the Fed ponders an end to its $85 billion quantitative easing program, investors should shore up their bond funds by moving to target maturity funds ahead of a Fed exit. While rising rates drives down all bonds (and bond funds), investors who use target maturity funds will have nothing to lose as each security is held to maturity."
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