ETF Bonds, Not Looking Too Bad in 2010....

     I have not been a fan of ETFs, which I refer to as a "Globalized Mutual Funds". And I've damn well highlite Mutuals in the core principles of my personal investment philosophy: "No Burgers, Not Too Trashy, No Mutual Funds".  My personality doesn't lend itself to Prostituting Principles , but I have discovered a loophole to appease my psyche: ETF Bonds.

     My Ex in San Diego gave me the lead and I liked what I saw (sorta).  It's research intensive, having to do the co backgrounds to avoid getting the "GM Investor Experience" and needed a general knowledge of foreign bankruptcy law. etc.  And I wanted a good return for the fees I'll be paying. High-yield issues are behaving like shares, though, as befits their higher risk profile.  Do some R&B and you may find them worthwhile.

Here's one to get started with:

     The iShares iBoxx High Yield Corporate Bond Fund (HYG), which tracks the iBoxx high-yield bond index, has moved more or less in lock step with the S&P 500.  This exchange-traded fund holds non-investment grade dollar-denominated bonds, debt issued by those organisations not able to obtain a BBB- rating or better from the main agencies.  Full details of this ETF and its holdings are available on the iShares website.  But its most eye-catching feature right now is the distribution yield of over 9%.

   

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