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ETF Trends
04-05-2008, 05:11 PM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)

http://www.etftrends.com/images/2008/04/03/398611825.jpeg (http://etftrends.typepad.com/photos/uncategorized/2008/04/03/398611825.jpeg) Bond exchange traded funds (ETFs), known for their defensive or conservative strategies, are starting to feel the impact of the lopsided market. Credit quality, inflation and the uncertain economy are starting to affect the usually even-keel bond market. ETFs such as the iShares Lehman TIPS Bond ETF (TIP (http://finance.yahoo.com/q?s=tip)) provide a low-cost and efficient way to buy and sell bonds.
But one expert says market volatility is creating dislocations in the fixed-income segment. Investors are flocking to the bigger, more established funds instead of the newer ones. They're also showing particular interest in the less risky types, such as those that don't contain mortgage securities or junk bonds.
Michael A. Pollock for The Wall Street Journal reports (http://online.wsj.com/article/SB120708036190781233.html?mod=googlenews_wsj) that bond ETFs typically contain a sample representative of the bonds within the index - an index could have thousands of members, but the fund may only have 100 of those holdings.
There are many bond ETFs available. A few of them:

iShares Lehman 1-3 Year Treasury Bond (SHY (http://finance.yahoo.com/q?s=SHY))
Vaguard Short Term Bond (BSV (http://finance.yahoo.com/q?s=BSV))
SPDR Lehman International Treasury Bond (BWX (http://finance.yahoo.com/q?s=BWX))


Complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/264715787/bonds-have-been.html)