Treasury ETFs: Filling In The Duration Spectrum

There was a time not that long ago when investors harbored significant concerns over including fixed income ETFs within their portfolio. When the first bond ETFs were introduced many were uncertain that the marriage of fixed income and the exchange-traded structure would be an efficient and productive one. But as these securities have build a track record the investor comfort level has skyrocketed, along with total fixed income assets. A wave of general risk aversion has washed over financial markets in 2010, sending investors flocking to safe haven investments. That has caused the size of the Government Bonds ETFdb Category to swell; the 25 ETFs offering exposure to this asset class now have aggregate assets north of $15 billion. When making a bet on bonds, one of the most important decisions investors make relates to duration. Generally speaking, a longer time until maturity means a more attractive yield. In return, investors [...] Click here to read the original article on ETFdb.com. Related Stories: Schwab Planning TIPS, Treasury ETFs What’s Gotten Into Treasury ETFs? PIMCO Rounds Out Treasury ETFs With ZROZ, FIVZ