The income ETFs category is one of the most popular right now among investors and advisors, as both look to help portfolios ride out rising costs. Even before this year's serious economic headlines and risks, investors were adding income ETFs to transition investments to retirement.
Clients looking for income? Not satisfied with your core fixed income allocation and want to add some oomph?
With 10-year Treasury yields too high for many investors' comfort and with the Federal Reserve potentially boxed into a corner of not cutting interest rates this year, advisors and fixed income investors are revisiting short duration bonds and the related ETFs.
2026 is somehow almost halfway through, and the market environment has seen quite a lot happen since its start. Entering the year, investors hoped for rate cuts from a new Fed chair.
It's certainly no secret that some advisors are viewing fixed income as a safe haven from U.S. equity volatility. Given the correlation dynamic between stocks and bonds, this shouldn't come as a particular surprise.
Tariffs and interest rates are major contributors to the wall of worry for investors. It's not just affecting the equities market, it's affecting fixed income.
Is now the time for short duration bonds? It very well may be.
Fixed income has come back to the fore for many investors looking at their portfolios, and unsurprisingly so. The Federal Reserve's battle against inflation has reached a period of relative stability, while the rate cut craze has also ebbed away.