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||13.3||2.1||5.4||5.7|
|International Government Bonds||SPDR Barclays International Treasury Bond ETF||BWX||2||10.9||4.1||3.5||3.4|
|Emerging Market Bonds||iShares JPMorgan USD Emerging Markets Bond ETF||EMB||3||6.2||4.4||4.6||-2.8|
|Short Term Corporate Bonds||iShares 1-3 Year Credit Bond ETF||CSJ||4||2.2||0.3||0.8||1.1|
|Short Term Treasuries||iShares 1-3 Year Treasury Bond ETF||SHY||5||0.9||0.2||0.3||0.4|
|Treasury Notes||iShares 7-10 Year Treasury Bond ETF||IEF||6||0.8||2.5||2||-3.7|
As of: April 12, 2014