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