ETF Daily News Says Target Maturity ETFs Underrated
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Tuesday, June 18, 2013

ETF Daily News Says Target Maturity ETFs Underrated

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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