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||14.6||4.3||3.5||6.8|
|Short Term Corporate Bonds||iShares 1-3 Year Credit Bond ETF||CSJ||2||2.7||0.7||0.6||1.3|
|International Government Bonds||SPDR Barclays International Treasury Bond ETF||BWX||3||1.6||2.7||2.1||-3.2|
|Short Term Treasuries||iShares 1-3 Year Treasury Bond ETF||SHY||4||1.1||0.4||0.4||0.4|
|Treasury Notes||iShares 7-10 Year Treasury Bond ETF||IEF||5||-5.8||1.7||-2.6||-5|
|Emerging Market Bonds||iShares JPMorgan USD Emerging Markets Bond ETF||EMB||6||-7||3.6||-3.2||-7.4|
As of: November 30, 2013