• The iM-Bond Market Trader exploits the fact that, generally, when equity returns are good high yield bonds outperform investment grade bonds.
• When equity performs well the model invests in one of the high yield bond ETFs HYG, JNK, or EMB.
• If stock market climate deteriorates the model switches to Treasury Bond ETF IEF.
• Backtesting over the preceding 20 years the model showed a simulated annualized return of 14.6% with a maximum drawdown of -9.6%, versus 5.0% and -9.3% for benchmark ETF BND, respectively.
• Simulations also show that the model’s returns over any calendar year are positive and exceeded those of BND.

This model uses only four fixed income ETFs:
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