|
|
|
|
| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
|
|
| Bonds Online |
|
|
| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.00% |
|
|
S&P California Bond Index
|
2.96% |
|
|
S&P New York Bond Index
|
3.13% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.70% |
|
|
| S&P/BGCantor US Treasury Bond |
400.09 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
848.03 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
174.07 |
|
|
S&P REIT Index (TR)
|
425.30 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,469.58 |
|
|
S&P MLP Index (TR)
|
5,428.50 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
Looking for income? ETFs offer diversified alternatives to bonds |
USA TODAY - Aug. 5, 2010 - by Matt Krantz
Q: Why are investors in search of income so intrigued by alternatives to bonds?
A: If you've been reading Ask Matt, you've probably noticed a theme: Investors are tired of low returns.
High-yield savings accounts are paying 2% or much less. That's not even enough to beat inflation. Meanwhile, stocks continue to languish, with the Standard & Poor's 500 index essentially flat.
As a result, investors looking for income have been searching far and wide. Some are angling for stocks of companies that pay big dividends.
Other investors are searching less familiar corners of Wall Street. Several have asked about preferred stock. And there have also been many questions about master limited partnerships.
You bring up an excellent point, though. It's interesting to see investors digging into the back pages of their finance books looking for income, when corporate bonds are available.
Much of the attention being paid to bonds so far this year is focused on debt issued by the U.S. government. Investors' desire for safety has pushed prices of Treasury securities higher, while pushing down their yields.
But companies, too, issue debt. And in many cases, you can get attractive yields from companies with decent credit quality. In addition, as a bond holder you have a senior claim to the company's assets in case things get ugly financially.
So, instead of investing in an energy pipeline master limited partnership, if you like the energy sector, you can buy an Exxon (XOM) bond that yields 5%. Plenty of corporate bonds have similar yields. Ford (F) has bonds yielding 6%, Alcoa (AA) 7%, Burlington Northern 5% and Goodyear Tire (GT) 5%.
Also, if you're just looking for huge yields, there are always junk bonds. So-called junk bonds are issued by companies with lower credit ratings, and are therefore more likely to default. But you can buy a junk bond exchange-trade fund (ETF) that owns many junk bonds and get a yield of about 8.5%. An example is the iShares iBoxx $ High Yield Corporate Bond ETF (HYG).
Or, if you want dramatically lower risk, consider an ETF that buys debt issued by companies with high credit quality. An example is the iShares iBoxx $ Invest Grade Corporate Bond ETF (LQD) that is yielding 4.5%.
Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies and Fundamental Analysis for Dummies. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com. Click here to see previous Ask Matt columns. Follow Matt on Twitter at: twitter.com/mattkrantz
|
|
|
|
|
|
| Partner Market Place |
|
|
|
| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
|
|
| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!
Unsubscribe here [+] |
|
|
|
|
|
|
|
|
