In this piece, we will take a look at the five best long term ETFs. If you want to learn about recent developments in the bond and stock markets, then take a look at 10 Best Long-Term ETFs.
5. VanEck High Yield Muni ETF (BATS:HYD)
10 Yr. Annualized Return: 2.78%
The VanEck High Yield Muni ETF (BATS:HYD) is another sizeable ETF that has $2.7 billion in holdings. Its year to date returns sit at 0.59%, and it is part of the VanEck fund family. As the title suggests, the VanEck High Yield Muni ETF (BATS:HYD) invests in municipal bonds. It tracks the Bloomberg Municipal Custom High Yield Composite Index (LMEHTR), which it has led in recent losses. More than 40% of the ETF’s holdings are rated BBB or lower, and an equal percentage is concentrated in bonds issued in California, New York, Puerto Rico, and Illinois.
4. SPDR Portfolio Long Term Corporate Bond ETF (NYSE:SPLB)
10 Yr. Annualized Return: 2.93%
SPDR Portfolio Long Term Corporate Bond ETF (NYSE:SPLB) is part of the SPDR State Street Global Advisors fund family. It has $718 million in net assets and was set up in 2009. Its benchmark index is the Bloomberg U.S. Long Term Corporate Bond Index, with the ETF limiting itself to investing in bonds that have maturities of at least ten years. The SPDR Portfolio Long Term Corporate Bond ETF (NYSE:SPLB) has a higher yield to maturity than its benchmark index, with a total of 2,830 holdings.
3. Invesco National AMT-Free Municipal Bond ETF (NYSE:PZA)
10 Yr. Annualized Return: 2.95%
Invesco National AMT-Free Municipal Bond ETF (NYSE:PZA) is part of the Invesco fund family and it was set up in 2007. It is another municipal bond ETF, and it tracks the ICE BofAML National Long-Term Core Plus Municipal Securities Index. More than 40% of its portfolio allocations are rated AA or higher by both S&P and Moody’s, and since the Invesco National AMT-Free Municipal Bond ETF (NYSE:PZA) is a long term ETF, the bulk of the securities have maturities longer than 15 years.
2. Vanguard Long-Term Corporate Bond Index Fund (NASDAQ:VCLT)
10 Yr. Annualized Return: 3.02%
Vanguard Long-Term Corporate Bond Index Fund (NASDAQ:VCLT) is a long term index ETF. It is part of the Vanguard fund family and was set up in 2010. It is one of the largest funds on our list, with $7 billion in net assets. The ETF limits itself to investing only in investment grade corporate bonds, and its benchmark index is the Bloomberg U.S. 10+ Year Corporate Bond Index.
1. Invesco California AMT-Free Municipal Bond ETF (NYSE:PWZ)
10 Yr. Annualized Return: 3.11%
Invesco California AMT-Free Municipal Bond ETF (NYSE:PWZ) was set up in 2007 and has 290 holdings. Like several other funds on our list, it also invests in municipal income tax exempt bonds. Most allocations are rated AA or Aa higher by agencies and have maturities greater than 15 years. Some of the Invesco California AMT-Free Municipal Bond ETF (NYSE:PWZ) top investments are in university and health facility debt.
Disclosure: None. You can also take a look at 12 Best Global ETFs to Buy and 20 Countries with Highest Rice Consumption Per Capita.
