ETFs wrap bonds in protective packages

It’s a tough time to be in equities, but the safe harbour of bonds is not looking much better, reports The Globe and Mail.

It says after a 30-year bull run, interest rates really have nowhere to go but up. And clients are wondering when this will happen, since the Fed plans to keep rates ultra-low for a couple more years.

So, because investors still seek the safety of bonds despite rates, ETF providers have stepped up and created lower-cost investment vehicles offering safer exposure.

Read more on the ETFs currently available, as well as on the 3 strategies investors use to play the yield curve.

Also read:

Bearing up with bonds

Bond rates to rise?

Tax-efficient bond investing

Don’t reach for yield

Claymore adds two laddered bond ETFs

Investors demand junk bonds