September 21, 2015

Investing in Top Corporate Bond ETFS in 2015

How to invest in top corporate bond ETFs in 2015? Find best fixed income exchange traded funds. Top funds are Fidelity Limited Term Bond ETF, Vanguard Short-Term Corporate Bond Index Fund, etc.

Best Fixed Income Funds

Corporate bonds ETFs invest in debt issued by companies with investment-grade credit ratings. Bonds included in these funds can feature varying maturities and durations. This fund provide yield for income for investors.

These top performer funds are sorted based on its year to date total return in 2015 (up to September 4, 2015). You can find this best ETF funds review from this article. Other fund information can be found below such as expense ratio, Morningstar rating, fund’s NAV, holdings, yield, etc.

Top 10 corporate bond ETFS in 2015 are:
    Investing in Top Corporate Bond ETFS in 2015
  1. ProShares Short Investment Grade Corporate ETF (IGS)
  2. PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG)
  3. Fidelity Limited Term Bond ETF (FLTB)
  4. Newfleet Multi-Sector Income ETF (MINC)
  5. FlexShares Credit-Scored US Corporate Bond Index Fund (SKOR)
  6. Vanguard Short-Term Corporate Bond Index Fund (VCSH)
  7. iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD)
  8. iShares 1-3 Year Credit Bond ETF (CSJ)
  9. SPDR Barclays Capital Short Term Corporate Bond ETF (SCPB)
  10. Solactive Investment Grade Subordinated Debt Fund (SUBD)
Updated on 9/4/2015

ProShares Short Investment Grade Corporate ETF (IGS)

ProShares Short Investment Grade Corporate ETF is tracking the inverse (-1x) of the daily performance of the Markit iBoxx $ Liquid Investment Grade Index. There is no yield for this fund. It has a small asset of $2.8 million. The expense fee is 0.95%.

If you think bond price will drop, you can use this fund to short the corporate bond. This top bond fund has returned -2.07% over the past 1 year, and -4.71% over the past 3 year. In 2015, the year-to-date return is 1.50%.

PowerShares Fundamental Investment Grade Corporate Bond ETF (PFIG)

This PowerShares Fundamental Investment Grade Corporate Bond ETF is an index fund. It is tracking the RAFI Bonds US Investment Grade 1-10 Index. It has $35 million of assets. The annual expense fee is only 0.22%. The 12 month yield is 2.54%.

More: Best Performing Total Bond Market ETF Funds 2014

Morningstar has ranked this bond fund with 3 stars rating. As one of top corporate bond ETFS in 2015, it has returned 1.63% over the past 3 years. The past 3 years performance is as follows:
Year 2015: 0.58%
Year 2014: 4.77%
Year 2013: -1.24%
Year 2012: 5.18%

Fidelity Limited Term Bond ETF (FLTB)

This Fidelity ETF utilizes its asset to purchase investment-grade debt securities of all types and repurchase agreements for those securities. This fund has $47 million of assets. It invests mainly in US bonds. The net expense ratio is 0.45% per year. The current yield is unknown.

This new index fund can be purchase from various brokerages such as Fidelity, TD Ameritrade, etc. In 2015, it has year to date return of 1.28%.

Vanguard Short-Term Corporate Bond Index Fund (VCSH)

As one of the top corporate bond ETFS in 2015, this Vanguard ETF has a low expense fee of 0.12%. It is also popular among investors. It has $10 billion of assets. The 12 month yield is 1.88%. This exchange trade fund invests mainly in high quality corporate bonds.

More: Top 15 Emerging Markets Bond ETFs In 2015

Vanguard Short-Term Corporate Bond Index Fund is ranked with 4 stars rating by Morningstar. The past 4 years performance is as follows:
  • Year 2015: 0.77%
  • Year 2014: 1.82%
  • Year 2013: 1.38%
  • Year 2012: 5.57%
  • Year 2011: 3.05%
The top 3 bond sectors are corporate bonds (98%), US Treasury (0.4%), and Convertible (0.3%). Top 3 holdings are Merrill Lynch Co Inc Mtn Be 6.875%, US Treasury Note 1.625%, and Jpmorgan Chase 6%.

Fund Performance

NoNameSymbolYTD1 Year3 Year
1ProShares Short Investment Grade CorporateIGS1.50%-2.81%-14.58%
2PowerShares Fundamental Investment Grade Corporate Bond PortfolioPFIG1.38%2.57%7.58%
3Fidelity Limited Term Bond ETFFLTB1.12%n/an/a
4Newfleet Multi-Sector Income ETFMINC1.02%0.73%n/a
5FlexShares Credit-Scored US Corporate Bond Index FundSKOR0.82%n/an/a
6Vanguard Short-Term Corporate Bond Index FundVCSH0.62%0.98%6.15%
7iShares 0-5 Year Investment Grade Corporate Bond ETFSLQD0.60%1.21%n/a
8iShares 1-3 Year Credit Bond ETFCSJ0.56%0.70%3.87%
9SPDR Barclays Capital Short Term Corporate Bond ETFSCPB0.49%0.45%4.18%
10Solactive Investment Grade Subordinated Debt FundSUBD0.48%1.56%n/a
11iShares Intermediate Credit Bond ETFCIU0.43%1.37%7.15%
12SPDR Barclays Capital Intermediate Term Credit Bond ETFITR0.37%1.42%7.94%
13LadderRite 0-5 Year Corporate Bond PortfolioLDRI0.18%n/an/a
14Investment Grade Interest Rate Hedged ETFIGHG0.15%-3.62%n/a
Please note: Performance quoted represents past performance. Past performance may not a guarantee or a reliable indicator of future results. Current performance may be higher or lower than performance shown.

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