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||18.7||3.4||7.8||7.5|
|International Government Bonds||SPDR Barclays International Treasury Bond ETF||BWX||2||10.6||2.5||5.2||2.9|
|Emerging Market Bonds||iShares JPMorgan USD Emerging Markets Bond ETF||EMB||3||7||2.9||6.6||-2.5|
|Short Term Corporate Bonds||iShares 1-3 Year Credit Bond ETF||CSJ||4||2.6||0.4||1.1||1.1|
|Treasury Notes||iShares 7-10 Year Treasury Bond ETF||IEF||5||1.4||1.3||3||-2.9|
|Short Term Treasuries||iShares 1-3 Year Treasury Bond ETF||SHY||6||0.9||0.1||0.5||0.4|
As of: March 1, 2014