Which Bond ETF should I invest in?

I manage my own brokerage account online. I am a big fan of two Bond ETFs with similar characteristics (both long term securities). One has a slightly higher SEC Yield than the other, and have marginally different premiums/discounts. Which one would you pick for your portfolio? Why?

Investing, Asset Allocation, ETFs
Answers
Sort By:
Most Helpful
August 2017
50% of people found this answer helpful

It's highly unlikely that there's really much difference.  

If you are looking for an ETF with fixed-income-like risk, look at preferred stocks.  The biggest fund in the sector is put out by iShares, symbol PFF.  Current yield is about 5.6% and the risk profile is more or less like long term corporate bonds.  It pays a variable monthly dividend and some of the dividends are QDI.

If you are under 50 with an income that you expect to grow, I think it is foolish to hold bonds.

August 2017
August 2017
August 2017
August 2017