The 'Sleep Well' Bond Rotation Strategy Which Has Returned 15% Per Year Since 2008 - Seeking Alpha
Here is an interesting article on bond ETFs. For those who prefer holding or trading bonds as opposed to stocks, the author presents some good ideas. Currently, bond funds like JNK are under-performing the S&P 500 and other ETFs like SDY and DVY. A lot depends on what your comfort zone is. For example, JNK has a 6.6% annual dividend that is paid on a monthly basis, but you won't get any significant capital gain whereas DVY is up 25% in the past 12 months along with a 3% dividend. Also, if the stock market as a whole falls, JNK will fall with it. Your only safety would be in government bond funds like TLT and cash.
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