Searching For Yield In Fixed-Income ETFs

By Tom Lydon: Multi-asset exchange traded funds are a new way to play the income focused theme in this current low interest rate environment. These funds cover the gamut from select asset classes and high-yield bond investments, and can fill out a long term strategy.

By Tom Lydon: High-yield corporate bonds are one of the biggest stories in 2012 for the ETF business.First, investors scratching for yield have been piling into ETFs that invest in non-investment-grade or "junk" bonds.

Michael Johnston submits:With interest rates at record lows and expected to remain depressed for the foreseeable future, investors have been forced to get creative in their hunt for current return. Some have shifted domestic fixed income holdings along the risk/return continuum, seeking out more attractive yields from junk bonds. Others have ventured beyond the US borders, embracing emerging market bonds as a higher-yielding alternative to Treasuries.

By Tom Lydon: Dividend exchange traded funds have been big sellers in 2011 as investors seek a conservative approach to stocks and extra income as 10-year Treasury yields again dip below 2%. ETFs have been a good tool for dividend seekers to hunt for yield because they can invest in a basket of stocks rather than researching individual companies. Dividend ETFs offer instant diversification with some of the highest yielding stocks. Here are five dividend ETFs offering fat yields:

By Tom Lydon: Junk bond exchange traded funds have raked in assets by yield-seeking investors over the past couple years. Investors have been buying these tools quickly, pushing yields to record lows, leaving some wondering if the party is over in the market for speculative-grade corporate debt.In fact, yields in the two largest junk bond ETFs are poised to fall below 5% for the first time.

By Tom Lydon: Bond ETFs continue to see heavy buying as investors look for new fixed-income options and remain wary of stocks. Now, with all the traditionally conservative bond markets at full saturation, investors are branching out to other areas, adding emerging market debt exchange traded funds.

By Tom Lydon: More providers are rolling out fixed-income ETFs designed to capitalize on investors' desire for yield.Guggenheim Investments this week introduced several new specialized ETFs that focus on the U.S. high-yield corporate debt market, or "junk" bonds.

Tom Lydon submits: Exchange traded funds that invest in Treasury bonds have been moving higher despite fears over the U.S. budget deficit and high-profile investors betting against government debt. Bond ETF investors are at a fork in the road, as uncertainty has plagued the fixed-income market. The Federal Reserve ends its bond-buying program less than two months from now, and investors are analyzing the slow-growth climate in markets and how bonds may fit into their portfolios.