The municipal bond market is inefficient when compared to other markets, particularly equities. This inefficiency creates an opportunity for active management to provide significant value in municipal bond funds.
Rate cuts shouldn't induce any angst for equities investors, but for fixed income investors, this could affect the income of their current portfolio. This is where exchange-traded funds (ETFs) focused on preferred stock can help.
The investing landscape is littered with combinations, such as large-cap growth or small-cap value. Some are official, while others are not.
The market continues to trend higher on Goldilocks [pixie]dust.
Rate cuts may be a compelling reason for investors to fill gaps in exposure to small- and mid-cap quality ETFs. The Federal Reserve slashed interest rates on September 18, reducing the target range for the federal funds rate by a half point.
For investors parked in money markets, now is an ideal time to consider moving that cash to a dividend ETF. Money market rates typically look less competitive as interest rates decline.