Here’s a general overview of the expected returns for U.S. corporate and government bond ETFs categorized by risk levels, based on historical performance and yield characteristics. Note that actual returns can vary significantly over time due to market conditions.
Low-Risk Bond ETFs
Typically, these have lower returns due to their higher credit quality and stability.
1. iShares U.S. Treasury Bond ETF (GOVT)
o Expected Annual Return: 1.5% - 3% (historically lower returns)
2. Vanguard Short-Term Treasury ETF (VGSH)
o Expected Annual Return: 1% - 2.5%
3. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
o Expected Annual Return: 3% - 5%
Medium-Risk Bond ETFs
These may offer moderate returns with a balance of risk and yield.
1. Vanguard Total Bond Market ETF (BND)
o Expected Annual Return: 2% - 4%
2. SPDR Bloomberg Barclays High Yield Bond ETF (JNK)
o Expected Annual Return: 4% - 7%
3. iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
o Expected Annual Return: 4% - 6%
High-Risk Bond ETFs
These tend to have higher potential returns, reflecting their increased risk levels.
1. Invesco Senior Loan ETF (BKLN)
o Expected Annual Return: 5% - 8%
2. SPDR Bloomberg Barclays Emerging Markets Local Bond ETF (EBND)
o Expected Annual Return: 5% - 10% (higher variance due to emerging market risks)
3. VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)
o Expected Annual Return: 6% - 9%
Considerations
• Market Fluctuations: Returns can be impacted by interest rates, inflation, and economic conditions.
• Historical Performance: These return estimates are based on historical performance and may not predict future results.
• Risk: Higher potential returns often come with increased risk, which should always be assessed in the context of an individual’s investment strategy.
For the most accurate and up-to-date returns, it’s advisable to check financial news sources or the respective ETF provider websites, as returns can fluctuate based on market conditions.
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