The USAA Core Intermediate-Term Bond
ETF (UITB), which has a net expense ratio of 40 basis points, has an investment objective that focuses on high current income without undue risk to principal.
SEIs SIIT Core Fixed Income Fund (SCOAX) was ranked #1 Intermediate-Term Bond
fund in its universe of 975 Intermediate-Term Bond
Funds by US News and World Report for the one year period ending January 31, 2017.
and corporate bond were the top two selling fixed-income categories for the period.
Consequently, ETFs are being used as core portfolio building-blocks, with 63% of ETF assets in TDFs distributed across three broad categories: intermediate-term bond
, large blend and foreign large blend.
The intermediate-term bond
fund category garnered the most flows for the fifth month in a row, taking in nearly USD15.
This has led to a finding by the firm that intermediate-term bond
funds that have a reported yield of 2.
One other strategy: Establish a separate account with funds earmarked for long-term care, including conservative vehicles such as intermediate-term bond
617-664-4738 Comingled Pool Wellington Management 617-951-5000 Sep Acct Composite Company, LLP INVESCO (NY) Inc 404-892-0896 Comingled Pool JP Morgan Asset Management Currency (SA) Pacific Investment Management Intermediate-Term Bond
(SA) Co LLC Western Asset Management Ultrashort Bond (SA) Company Federated Investors Money Market--Taxable (SA) Federated Investors Money Market--Taxable (SA) Barclays Global Investors NA Large Blend (SA) Barclays Global Investors NA Large Blend (SA) Barclays Global Investors NA Large Blend (SA) Blackrock Financial Management, Intermediate-Term Bond
(SA) Inc AIG Investments Long-Term Bond (SA) State Street Global Advisors Ltd.
The concavity of the yield curve--the level of intermediate-term bond
yields, relative to the average of short- and long-term bond yields--is a good proxy for the level of term premiums.
However, as college looms closer, less-risky investments, such as money-market and short- to intermediate-term bond
funds, are best.
Expect an ongoing rotation away from traditional intermediate-term bond
funds and into more flexible mandates.
After notable outflows last year, core, intermediate-term bond
funds saw their second consecutive month of inflows, bringing in USD 3.