Both of these are recent comments, reported today on MarketWatch.com . The first, by Zvi Bar, features ETFs up to about two year average duration.
My two favorites on Bar's list are 1) SHY with ~60% in US Governments and 35% in non-government mortgage issues. It has average duration of 1.84 years and pays ~0.8% based on annualizing the distributions through August divided by today's close. 2) BSV is Vanguard's short term bond fund with duration of 2.61 years, paying 2.02% holding 37% in Governments and 48% in corporates of top rating (not many banks). Both of these funds have AA average bond ratings. The choice would be based on your own duration risk profile and desire for modest income under 1% or just over 2%.
The second article, by Dave Fry of The Street, features intermediate corporate funds. Most of these are loaded with bank bonds, a lot of them from European banks, and have no appeal for me.
I don't own any of these right now and have put together my own portfolio of Vanguard, PIMCO, and Loomis Sayles bonds and have recently written it up here. But if you want a conservative all-in tradable fund, either of SHY or BSV, or even a mix of them, could work. They both have decent trading volumes.
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