Popular ETFs that track Treasuries and investment-grade loans
Comparing investment-grade loans and Treasuries: A key guide (Part 4 of 4)
Important ETFs
Both investment-grade loans and Treasuries have a number of ETFs tracking them. The iShares series tracks both asset classes. For Treasuries, the ETFs available include the iShares 20+ Year Treasury Bond (TLT), the iShares 1-3 Year Treasury Bond (SHY), the iShares 7-10 Year Treasury Bond (IEF), and the iShares 10-20 Year Treasury Bond (TLH).
The iShares 1-3 Year Treasury Bond (SHY) ETF tracks the Barclays Capital U.S. 1-3 Year Treasury Bond Index, which measures the performance of U.S. Treasury securities that have a remaining maturity of at least one year and less than three years. With an expense ratio of 0.15%, 96.15% of the ETF’s holdings are in U.S. government debt securities. This ETF contains 59 holdings, and the top ten holdings comprise 61.44% of the ETF.
The iShares 7-10 Year Treasury Bond (IEF) ETF tracks the Barclays Capital U.S. 7-10 Year Treasury Bond Index, which measures the performance of U.S. Treasury securities that have a remaining maturity of at least seven years and less than ten years. With an expense ratio of 0.15%, 97.78% of the ETF’s holdings are in U.S. government debt securities. This ETF contains 15 holdings, and the top ten holdings comprise 97.33% of the ETF.
The iShares 10-20 Year Treasury Bond (TLH) ETF tracks the Barclays Capital U.S. 10-20 Year Treasury Bond Index, which measures the performance of U.S. Treasury securities that have a remaining maturity of at least ten years and less than twenty years. With an expense ratio of 0.15%, 99.59% of the ETF’s holdings are in U.S. government debt securities. This ETF contains 18 holdings, and the top ten holdings comprise 80.51% of the ETF.
The iShares 20+ Year Treasury Bond (TLT) ETF tracks the Barclays Capital U.S. 20+ Year Treasury Bond Index, which measures the performance of U.S. Treasury securities that have a remaining maturity of at least 20 years. With an expense ratio of 0.15%, 99.2% of the ETF’s holdings are in U.S. government debt securities. This ETF contains 22 holdings, and the top ten holdings comprise 78% of the ETF.
Popular ETFs tracking investment-grade corporate loans include the Market Vectors Investment Grade Floating Rate ETF (FLTR), the iShares Floating Rate Bond (FLOT), and the SPDR Barclays Cap Investment Grade Floating Rate ETF (FLRN).
Issued by Van Eck, the Market Vectors Investment Grade Floating Rate ETF (FLTR) ETF tracks Market Vectors Investment Grade Floating Rate Bond Index, which comprises U.S. dollar-denominated floating rate notes issued by corporate issuers and rated investment-grade by at least one of three rating services. With an expense ratio of 0.19%, 85.8% of the ETF’s holdings are in corporate debt securities. This ETF contains 162 holdings, and the top ten holdings comprise 22.43% of the ETF. FLTR’s largest holding is JPMorgan Chase (JPM), a financial services company with a global presence that comprises 3.02% of the ETF’s holdings.
The iShares Floating Rate Bond (FLOT) ETF tracks the Barclays Capital
The SPDR Barclays Cap Investment Grade Floating Rate ETF (FLRN) tracks the Barclays Capital To learn more about investing in fixed income ETFs, see the Market Realist series Comparing leveraged loans and high yield bonds: A guide. Browse this series on Market Realist:
