The bond rotation strategy is a moderately aggressive bond investing strategy. It buys the bond sectors that have performed well recently. Buying momentum has been a rewarding strategy in the past.
This bond investing strategy is a good choice for an aggressive bond portfolio. It is not intended to be a replacement for the core bond allocation of an investor's portfolio, but would be a complementary allocation to enhance returns and add diversification. We think that the best way to use this strategy is to buy the top two or three ETFs each month.
|Market/Sector||ETF||ETF Ticker||Rank||Sum||13 Wk||26 Wk||52 Wk|
|High Yield Bonds||SPDR Barclays High Yield Bond ETF||JNK||1||11.5||-0.6||1.8||10.3|
|Short Term Corporate Bonds||iShares Barclays 1-3 Year Credit Bond Fund||CSJ||2||2.7||0.1||0.6||2|
|Short Term Treasuries||iShares Barclays 1-3 Year Treasury Bond Fund||SHY||3||0.4||0||0.1||0.3|
|International Government Bonds||SPDR Barclays International Treasury Bond ETF||BWX||4||0||0||0||0|
|Emerging Market Bonds||iShares JPMorgan USD Emerging Markets Bond Fund||EMB||5||-3.3||-2.5||-5||4.2|
|Treasury Notes||iShares Barclays 7-10 Year Treasury Bond Fund||IEF||6||-3.6||-0.5||-1.8||-1.3|
As of: June 15, 2013