Only One Rate Cut Expected in 2025? ETFs to Play
Morgan Stanley, Barclays and Macquarie expect only one Fed rate cut this year while Goldman Sachs and Wells Fargo expect two, indicating higher rate environment this year.
Fed Kept Rates Steady: ETFs to Invest In
Rates are likely to remain at the higher levels. High-yield ETFs should fare better in the near term.
How Hedge Funds Were Positioned at End of 2024
In mid-February 2025, some in the media will be excitedly discussing what stocks were bought or sold by hedge funds in Q4 2024. However, thanks to the Unlimited Hedge Fund Barometer, we can understand today that long/short equity managers were avoiding more cheaply valued small- and midcap stocks in favor of growth stocks.
Bank Loans Are a Compelling Fixed Income Opportunity in 2025
There are many opportunities in fixed income in the current environment, with bank loans looking uniquely attractive. Bond yields are currently sitting at relatively high levels, which makes bonds look attractive in the current environment despite tight spreads.
Top 3 ETFs to Hedge Against Inflation in 2025
The Federal Open Market Committee closed 2024 with its third consecutive reduction to the overnight borrowing rate, while Chair Jerome Powell suggested the pace of rate cuts is likely to slow in the coming year or more. Though the Fed lowered rates multiple times in recent months amid strong economic growth and easing inflation, there is broad uncertainty about how these two metrics will shift into the new year.
Will U.S. Treasury Yields Surge Postelection? ETFs in Focus
Long-term U.S. treasury yields have been on the uptrend lately. Benchmark U.S. Treasury yields were 4.26% on Nov. 5, up from 3.74% recorded on Oct.1.
Will the Fed Opt for a Hefty Rate Cut? ETF Strategies to Follow
An upbeat job market and moderately cooling inflation may prevent the Fed from opting for significant rate cuts in the near future.
Millennial Investor? Don't Ignore the Power of Fixed Income ETFs
Getting started building a portfolio, or just looking to fine-tune your allocation? With the millennial generation between their late 20s and early 40s, they're in the prime age group to start taking investing more seriously.
BKLN: Where Have All The Defaults Gone
The BKLN ETF has performed well with 4.1% returns in 6 months due to lower-than-expected loan defaults and low credit spreads. However, forward returns for BKLN are expected to trend lower as the Federal Reserve cuts short-term interest rates, impacting leveraged loan yields. With expected forward returns of ~6%, I am maintaining my hold rating at this time.
Can ETFs Capture Private Equity Markets?
The world's largest asset managers are scrambling to devise new ways to package private investment opportunities into a passive ETF wrapper. Private assets are the fastest-growing market in the financial world — but could also prove the most challenging field for ETF providers to penetrate.
BKLN And Senior Loans: A Hold Due To Imminent Rate Cuts And Expenses
BKLN is the largest senior loan ETF in the market. Although it has outperformed these past few years, coming rate cuts are a significant headwind. BKLN's 0.65% expense ratio is higher than average, and a significant long-term negative.
BKLN: A Near-9% Yield As We Await The Fed's Decision
The Invesco Senior Loan ETF is a risky but potentially high-reward proposition for investors expecting interest rate cuts but don't want to bet on when they'll start. BKLN primarily contains junk debt, and that's the biggest risk if higher-for-longer goes on indefinitely. This ETF offers a risky but attractive near-9% yield for 'waiting out the Fed', in a manner of speaking. Risk is high, but it's a Buy.
