Junk bonds are beating the broader market so far in 2024 — but watch this shift
Junk bonds are beating the broader U.S. fixed-income market so far in 2024 — but pummeled Treasurys have attempted a comeback lately.
An Active ETF to Consider After May Saw More Bond Fund Inflows
The month of May served as a reminder to get core bond exposure. That's because funds focused on the debt market saw increased inflows after April's outflows, resuming the positive trend.
A Critical Cooldown
U.S. equity markets posted a mixed performance this week, while benchmark interest rates dipped to two-month lows after a critical slate of inflation data showed an encouraging cooldown in price pressures. As expected, the Fed held rates steady at two-decade highs of 5.50%, but the committee's "dot plots" showed that the FOMC is now penciling in just one rate-cut in 2024. Posting a series of record highs throughout the week, the S&P 500 advanced another 1.6% to extend its year-to-date total returns to over 15%, but the gains were notably top-heavy.
State Of REIT Nation: Waiting At The Bottom
REITweek, the annual REIT industry conference, was held last week in New York City. Humbled by two years of rate-driven headwinds, the venue halls were as quiet as any REITweek. Excitement was muted after numerous "false starts" on the long-awaited Fed pivot, a dearth of IPO and M&A activity, and a two-year period of significant underperformance versus the broader market. It can only get better: since the start of the Fed's rate hike cycle in March 2022, the REIT Index has underperformed the S&P 500 by a whopping 40 percentage-points.
Boost Your Core Portfolio Income Tax Efficiency With NEOS
The NEOS suite of actively managed income ETFs offers tax-efficient income across core holdings. These include equities, bonds, and cash alternatives.
