Best ETFs For Trading: TIPS, Junk And Munis


These 15 funds are the cheapest in their categories for short-term speculations. 


Owning a bond fund is one way to bet on a decline in interest rates. The table ranks the cheapest exchange-traded funds for three-month holding costs on a $10,000 investment.

3-month Holding Cost*
Liquidity Score
Ticker Exchange-traded fund
STIP iShares 0-5 Year TIPS Bond $2.75 A
VTIP Vanguard Short-Term Infl-Prot Secs 3.59 A
SCHP Schwab US TIPS 3.60 A
TIP iShares TIPS Bond 5.97 A+
IPE SPDR Blmbg Barclays TIPS 7.01 B
TDTT FlexShares iBoxx 3Yr Target Dur TIPS 9.79 B
HYGH iShares Interest Rate Hedged High Yield Bond 3.65 B
HYLB Xtrackers USD High Yield Corp Bd 6.53 A
SHYG iShares 0-5 Year High Yield Corp Bd 7.20 A
HYG iShares iBoxx $ High Yield Corporate Bond 9.94 A+
MUB iShares National Muni Bond 3.17 A
VTEB Vanguard Tax-Exempt Bond 4.28 A
SUB iShares Short-Term National Muni Bd 6.37 B
SHM SPDR Nuveen Blmbg Barclays ST MunBd 7.72 A
TFI SPDR Nuveen Blmbg Barclays Muni Bd 9.00 A

*Cost of a $10,000 position held for three months. Reflects bid/ask spread, expense ratio and cost offset from securities lending.

Data sources: Morningstar, Bloomberg, fund distributors

Bid/ask spreads figure heavily, and expense ratios not so heavily, in the cost calculation for speculative plays. For long-term investing the reverse is true, and different ETFs rise to the top in cost efficiency. For long-term cost rankings see Best ETFs: TIPS, Best ETFs: Junk Bonds, and Best ETFs: Tax-Exempt Bonds.

For links to the three-month cost rankings in other categories, see Best ETFs for Trading.

Products You May Like

Articles You May Like

PayPal poaches Wells Fargo’s innovation executive Peggy Mangot for venture capital team
Mortgage rates set another record low, but borrowers take a step back
Tennessee lawmakers to consider giving businesses immunity from coronavirus-related suits
Explainomics: How to build an investment portfolio that supports racial justice
Cramer says Trump’s election delay suggestion ‘sows chaos and chaos is bad for the stock market’