In this piece, we will take a look at the 5 best performing bond ETFs in 2023. If you want to take a deeper look at the bond market, then check out 10 Best Performing Bond ETFs in 2023.
5. Franklin Senior Loan ETF (BATS:FLBL)
Year To Date Share Price Gains: 10.72%
Franklin Senior Loan ETF (BATS:FLBL) is an ETF part of the Franklin Templeton Investments fund family. It has net assets of $237 million and was set up in 2018. Most of its portfolio is invested into fixed income assets, and sector wise roughly one third of the funds are allocated to the healthcare and technology sector, with significant exposure to the finance industry as well. Its loans have an average maturity of four years and the funds are allocated to over 200 holdings.
4. FolioBeyond Alternative Income and Interest Rate Hedge ETF (NYSE:RISR)
Year To Date Share Price Gains: 10.83%
The FolioBeyond Alternative Income and Interest Rate Hedge ETF (NYSE:RISR) invests in rather interesting securities that are called MBS IOs. Short for mortgage backed securities interest only, these require the mortgage borrower to only make interest payments over the time of the loan, with principal repayments made in full when the loan period ends. It is part of the FolioBeyond fund family and has net assets that are worth $56.68 million. More than 10% of its holdings are concentrated in mortgage securities backed by the Government National Mortgage Association (GNMA).
3. Direxion Daily 20+ Year Treasury Bear 3X Shares (NYSE:TMV)
Year To Date Share Price Gains: 10.91%
The Direxion Daily 20+ Year Treasury Bear 3X Shares (NYSE:TMV) is a sizeable exchange traded fund with $284 million in net assets. Like the ProShares UltraShort ETFs that we’ve covered earlier, this fund also seeks to bet against 20 year U.S. Treasury Bonds. It seeks to offer three times the returns in opposite movements of a 20 year bond index, which is an ambitious investment objective, to say the least. Most of its holdings are concentrated in a Goldman Sachs money market portfolio of short term U.S. debt obligations.
2. BondBloxx CCC Rated USD High Yield Corporate Bond ETF (NYSE:XCCC)
Year To Date Share Price Gains: 12.35%
BondBloxx CCC Rated USD High Yield Corporate Bond ETF (NYSE:XCCC) is a $13.3 million ETF that invests in CCC grade securities. It is another young fund on our list, having been set up a little over a year back in June 2022. Sector wise, most of the funds are concentrated in the debt of companies operating in the media, capital goods, technology, and healthcare industries.
1. Janus Henderson B-BBB CLO ETF (BATS:JBBB)
Year To Date Share Price Gains: 12.50%
Janus Henderson B-BBB CLO ETF (BATS:JBBB) invests in securities called collateralized loan obligations (CLOs). These are essentially a collection of loans that are sold as a package and are known for more transparency than their close relatives, collateralized debt obligations (CDOs). The fund has $106 million in net assets and it was set up in 2022.
Disclosure: None. You can also take a look at 10 Best Gold ETFs and 10 Best Dividend Stocks to Buy According to Noam Gottesman’s GLG Partners.
