10 Top-Performing Short-Term Bond ETFs

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High yields have put bonds back in the spotlight this year, with some investors seeing an appealing opportunity to capture strong returns. In fact, a survey this spring found most financial advisors considered the opportunities in bond yields to be the best they had seen since before the global financial crisis.

Last week, as stocks fell on strong jobs data and market expectations that the Federal Reserve will resume raising interest rates, Treasury yields reached levels not seen since 2007.

Bond ETFs appear to have done well with investors over the long term. In the second quarter, taxable fixed income ETFs saw their 38th straight quarter of net inflows, and investors also were net buyers of municipal bond ETFs, according to a recent LSED Lipper report.

ThinkAdvisor looked at short-term bond exchange-traded funds to see which have posted the strongest year-to-date price performance, based on Vetta Fi’s ETF Database as of July 7. (Newly issued ETFs may not be included in the database.)

Short-term bond funds invest in fixed income securities with durations between one and five years, according to ETF Database, although some in this list also invest in ultra-short-term vehicles, which usually have durations under a year.

Check the gallery for a glimpse of the 10 top-performing short-term bond ETFs.

Slides: Credit: Chris Nicholls/ALM

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