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|
|Emerging Market Bonds||iShares JPMorgan USD Emerging Markets Bond ETF||EMB||1||23.8||3.7||8.1||12|
|High Yield Bonds||SPDR Barclays High Yield Bond ETF||JNK||2||20.8||2.3||5.5||13.1|
|International Government Bonds||SPDR Barclays International Treasury Bond ETF||BWX||3||19.5||2.5||6.3||10.7|
|Treasury Notes||iShares 7-10 Year Treasury Bond ETF||IEF||4||9.3||1.4||4||3.9|
|Short Term Corporate Bonds||iShares 1-3 Year Credit Bond ETF||CSJ||5||3||0.4||0.6||2|
|Short Term Treasuries||iShares 1-3 Year Treasury Bond ETF||SHY||6||0.9||0.1||0.2||0.6|
As of: July 5, 2014