Posts tagged as:

PRB

When the Federal Reserve announced recently that it plans to keep key interest rates at nearly zero until 2014, it hardly came as a surprise. With the economic recovery still in a very fragile state and inflationary pressures remaining tame, record low interest rates are expected to hang around for quite a while. While stock markets largely cheered the latest announcement, you could almost hear the exasperation of those who rely on generating meaningful current returns from their portfolios. The extension of the low rate environment means extending the challenges for yield hungry investors, such as those who rely on their portfolio to generate cash flows to cover living expenses [see also Six Juicy High Yield Bond ETFs For 2012].

Against this backdrop, more and more advisors have engaged actively in searching out securities that offer meaningful current returns for their clients. Not surprisingly, that objective generally leads to the assumption of greater risk, whether though lower creditworthiness or longer durations. There are, of course, investors at the opposite end of the spectrum, whose primary objectives focus not on maximizing current yield but on minimizing risk and simply maintaining the value of their investment. And for those looking to do a bit more than stuffing their cash under the mattress, there are some interesting ETF options out there [for more ETF ideas, sign up for the free ETFdb newsletter]:  [click to continue…]

{ Comments on this entry are closed }

Van Eck introduced the Market Vectors CEF Municipal Income ETF (XMPT) on Wednesday, giving investors another option for accessing a corner of the U.S. bond market that has been the subject of heated debate in recent weeks. The new ETF will seek to replicate the S-Network Municipal Bond Closed End Fund Index, a benchmark that includes U.S. CEFs that are designed to produce federally tax-exempt annual yield. Currently, the underlying index consists of about 88 closed end funds. Almost 95% of the underlying index is investment grade debt. [click to continue…]

{ Comments on this entry are closed }

As investors have become more comfortable with the marriage of fixed income exposure and the ETF wrapper, billions of dollars have flowed into bond ETFs in recent years. Impressive innovation in the space has provided investors with more options than ever before, including enhanced granularity in virtually every corner of the fixed income market. Still, […]

{ Comments on this entry are closed }

As investors have become more comfortable with the idea of achieving fixed income exposure through the exchange-traded structure, bond ETF assets have skyrocketed and the number of funds has increased rapidly. For those in higher tax brackets, municipal bonds have always been a popular option, as the tax-exempt feature of the interest payment boosts the […]

{ Comments on this entry are closed }