Trump tariffs likely to disrupt trade, hit employment, and prompt the Fed to cut interest rates, benefiting bonds over equities in the short to medium term. iShares Core U.S. Aggregate Bond ETF offers diversified exposure to US investment grade bonds, with low expense ratio and strong risk-adjusted returns. AGG's holdings include US Treasuries, Mortgage Backed Securities, and corporate credit, making it a stable choice amidst market volatility.
Ahead of the April 2nd tariff unveiling, US equity markets were under renewed pressure this week on downbeat data showing a further dip in consumer confidence and hotter-than-expected PCE inflation. As a turbulent first quarter wraps up, the updated GDPNow - the Atlanta Fed's closely watched GDP tracking model - forecasts growth of -2.8% overall and -0.5% on a "gold-adjusted basis." Posting weekly declines for the seventh time in the past nine weeks, the S&P 500 finished lower by 1.5% - extending its drawdown to 9.3% from its record-highs.
On this week's episode of ETF Prime, host Nate Geraci and VettaFi Investment Strategist Cinthia Murphy explore five ETF categories potentially benefiting from recent market turmoil. Later, Geraci welcomes industry veteran Tom Lydon to discuss the current ETF landscape.
U.S. fixed income ETFs garnered strong flows in February, uncovering insights into investor behavior and risk appetite in 2025. The $1.6 trillion U.S. fixed income ETF segment took in $31 billion in net flows in February, bringing year-to-date flows to $59 billion as of the end of the month.
Some sectors of the stock market have fared well amid mounting tariff worries.
Investors don't have to accumulate stocks to generate returns. Bonds can provide stable income and less volatility than equities. These financial assets typically retain their value until maturity and pay coupons along the way.
Interest rates are historically high. Bonds often offer higher yields than REITs. Yet, REITs crush them over the long run. Here's why.
Investors have upped their interest in actively managed bond ETFs, pouring record capital into them in January as some paid up in hopes of stronger returns.
Aspiring retirees spend many years saving up money so they have a large enough nest egg for retirement.
US equity markets posted modest declines this week amid a "DeepSeek" tumble, while interest rates declined to six-week lows as markets responded to the pause in the Fed's rate-cutting cycle. The Nasdaq 100 was the center of the action this week, dipping 1.4% on concern over potential competition from Chinese startup DeepSeek, which sparked a sharp sell-off in AI-darlings. Real estate equities were among the stronger performers for a third-straight week, buoyed by easing interest rates and by a relatively solid start to REIT earnings season.
Following the best week since November, U.S. markets posted their best first-week of a Presidential term since 1985 as investors saw business-friendly undertones in the early days of the new administration. Striking an agreeable tone for markets that were wary of the inflationary impacts of trade and fiscal policy, President Trump focused on supply side policies and didn't immediately implement sweeping tariffs. Posting record-highs for the first time since early December, the S&P 500 gained another 1.7% on the week, notching back-to-back weekly gains following a stretch of 4-of-5 weekly losses.
The US debt ceiling issue and rising interest rates are accelerating public debt, posing significant risks to popular bond ETFs like AGG. Gold's rising prices signal a potential US monetary crisis as investors hedge against the risk of debt monetization and devaluation of the US dollar. A fiscal crisis within the next decade seems inevitable, and potential monetization could lead to significant losses for fixed-rate bond investors.