Worried About Fixed Income Bubbles? Try A Dividend ETF

Despite bullish rhetoric from Washington and some indications of progress–the strength of the recent earnings season was a pleasant surprise–investors remain anxious in the current environment. With equity markets facing tremendous obstacles ahead, including elevated unemployment rates and an uncertain regulatory environment, safe havens have seen no shortage of interest [see Three ETFs To Protect Against A “Hindenburg Omen” Sighting]. The 18 month period between January 2008 and June 2010 saw an astonishing $232 billion flow out of equity markets. During that same period, a total of $559 billion was invested in fixed income, demonstrating that investors are clearly gravitating towards the low-risk/low-reward profile offered by bonds. Bond prices have soared and yields have plummeted in recent months, leaving more and more analysts worried that a bond bubble is forming. IF that is indeed the case, the unwinding could wreak havoc on what many consider to be today’s [...] Click here to read the original article on ETFdb.com. Related Stories: Rethinking AGG: One Stop Fixed Income Exposure? Van Eck Files Two New Fixed Income ETFs How To Juice Your Fixed Income Yields With International Money Market ETFs