I see your point. The more I look at these, the more confused I get. For example, when I look at yield on my brokerage quote screen the yields are impossibly high. Then I looked at average coupon on a 2016 maturity. It was something like 3.xx%. Well, since these are overwhelmingly investment grade bonds, though few AA for sure, this would only be possible because the managers are buying bonds at a premium over face value to enhance cash flow. But it is going to take some digging to find and understand what we would need to know to calculate a return to maturity. So we'll be buying current yield, but looking at a capital loss on the bond. I don't know how this would be treated for taxes, and if I need to hire a CPA there goes any reason for using these things- why not just roll one year treasuries?
Maybe the marketers figure what we don't know won't kill a sale, and maybe the SEC hasn't yet figured out what they need to compel in the disclosures. I wish I knew more about this area. I am going to a seminar on ETFs at broker's soon, but my experience with these is that it is hard to get nitty-gritty questions answered, since these seminars are essentially sales meetings, and i will become persona non grata if I am not a good boy.
Maybe I'll throw up a lob or two in hopes of getting baseball tix.
Ha