Investment Grade Corporate Bond ETFs: Time to Exit

By Tom Lydon: Speculative grade bonds come with attractive yields, but investors have started to hedge against riskier bets. Meanwhile, investment-grade corporate debt exchange traded funds are starting to outperform as investors move toward safety.

By Tom Lydon: ETF Spotlight on iShares iBoxx Investment Grade Corporate Bond (NYSEArca: LQD), part of an ongoing series. Assets: $14.3 billion. Objective: The iShares iBoxx Investment Grade Corporate Bond Fund tries to reflect the performance of the corporate bond market based on the iBoxx $ Liquid Investment Grade Index.

Eric Parnell submits:Suppose you’re investing for income. You likely want to be conservative with your asset allocation, given all of the turbulence that has rocked investment markets in recent years. Perhaps you’re also looking ahead and see the rising threat of inflation and the potential for higher interest rates in the future. With all of this in mind, you may decide you want to shorten the duration in your bond portfolio in an effort to dial down risk. But when it c

optionMONSTER submits: By Chris McKhann A large trader is looking to take advantage of the fact that volatility in corporate bonds has fallen back near their lows.

By Morningstar: By Timothy Strauts

Peter Tchir submits: Credit markets continue to trade poorly. They have struggled to perform well even during moments of equity strength and the conditions that give me the most concern have not been corrected.

Surly Trader submits: At a point in time when a 10 year Treasury earns 3.37%, a 30 year Treasury earns 4.44%, and an investment grade corporate bond portfolio with average maturity of 12 years (LQD) has an indicated yield of 4.7% you just have to wonder where any sort of income is available.

Michael Johnston submits:ProShares, the largest issuer of inverse and leveraged ETFs, continues to build out the portion of its product lineup offering opportunities to gain short exposure to fixed income securities.