2013 has been a somewhat volatile year for the fixed income market, as investors continue to weigh the current low interest environment with the possibility of the Federal Reserve tapering its bond buying purchases. As a result, most bond ETFs struggled to keep up with the equity market’s quick pace, with many funds ending in the red in 2013 [see The Most Successful New ETFs of 2013].
There were, however, some bright spots in the space, including the SPDR Barclays Capital Convertible Bond ETF (CWB, A-) and the US Treasury Steepener ETN (STPP, C+). A number of funds from the High Yield Bonds ETFdb category also made the best performers list.
Below, we highlight 2013’s best and worst Bond ETF performers.
Please note that the year-to-date ETF returns featured below are as of as of December 11, 2013:
2013's Best Performing Bond ETFs SPDR Barclays Capital Convertible Bond ETF (CWB) 17.57% US Treasury Steepener ETN (STPP) 15.43% Global ex USD High Yield Corporate Bond Fund (HYXU) 11.89% Peritus High Yield ETF (HYLD) 10.26% BulletShares 2018 High Yield Corporate Bond ETF (BSJI) 7.75% DB Italian Treasury Bond Futures ETN (ITLY) 7.26% B-Ca Rated Corporate Bond Fund (QLTC) 7.15% BulletShares 2016 High Yield Corporate Bond ETF (BSJG) 7.04% Global High Yield Corporate Bond Fund (GHYG) 6.97% 0-5 Year High Yield Corporate Bond Index Fund (HYS) 6.84% Market Vectors Fallen Angel ETF (ANGL) 6.68% BulletShares 2017 High Yield Corporate Bond ETF (BSJH) 6.66% Market Vectors International High Yield Bond ETF (IHY) 6.02% SPDR Barclays Capital Short Term High Yield Bond ETF (SJNK) 5.96% Chinese Yuan Dim Sum Bond Portfolio (DSUM) 5.89%
2013's Worst Performing Bond ETFs 25+ Year Zero Coupon U.S. Treasury Index Fund (ZROZ) -20.56% Extended Duration Treasury ETF (EDV) -19.21% 15+ Year U.S. TIPS Index Fund (LTPZ) -18.66% Market Vectors CEF Municipal Income ETF (XMPT) -15.87% 20+ Year Treasury Bond ETF (TLT) -12.61% Australia Bond Index Fund (AUD) -12.40% US Treasury Long Bond Bull ETN (DLBL) -12.21% Global Advantage Inflation-Linked Bond Strategy Fund (ILB) -11.65% Australia & New Zealand Debt Fund (AUNZ) -11.41% Long-Term Government Bond Index Fund (VGLT) -11.37% SPDR Barclays Long Term Treasury ETF (TLO) -11.16% Emerging Markets Sovereign Debt Portfolio (PCY) -11.08% Emerging Markets Local Debt Fund (ELD) -10.42% Canada Bond Index Fund (CAD) -9.80% Build America Bond Strategy Fund (BABZ) -9.80%