Fixed income investors don’t have to venture too far out onto the yield curve in order to extract yield. They can do so with short-term corporate bond funds that minimize duration risk. One prominent example is the Vanguard Short-Term Corporate Bond Index Fund ETF Shares (VCSH) .
Historically low interest rates are making for a challenging fixed income environment. VanEck offers three bond ETFs that can still thrive. The environmental, social, and governance (ESG) investing trend looks like it has the staying power.
With inflationary poised to surge and Treasury yields already having done so, these are tricky times on the fixed income front. Advisors can find relief with the WisdomTree Fixed Income Model Portfolio. “This model portfolio is focused on a diversified stream of income.
The past year saw high yield bonds rally strongly in the wake of March’s Covid-driven selloff as growth rebounded and a widely expected wave of corporate bankruptcies failed to materialize.
WisdomTree has launched a new ETF in the US providing exposure to alternative credit. The WisdomTree Alternative Income Fund (HYIN US) has listed on Cboe BZX Exchange and is linked to the Gapstow Liquid Alternative Credit Index .
With Treasury yields soaring, punishing other corners of the fixed income market in the process, advisors have their work cut out for them. Clients may be getting skittish about bond allocations, and the previously trusted 60/40 portfolio mix may not be as valuable as it once was.
Five Vanguard bond funds have enjoyed significant 2021 inflows. The five funds give fixed income investors a smorgasbord of options, including exposure to aggregate bonds, international fare, and the short side of the yield curve
Amid low domestic bond yields, advisors and investors are being compelled to get creative when it comes to generating fixed income. That effort can include emerging markets sovereign debt, which is accessible via an array of exchange traded funds, including the VanEck Vectors Emerging Markets Local Currency Bond ETF (NYSEArca: EMLC) .
Emerging markets bonds offer elevated levels of income, but the asset class can be tricky to navigate for ordinary investors. Active management can help separate risk from reward. One prominent example is the Global X Emerging Markets Bond ETF (EMBD)
Fixed income investors who want to satiate their appetites for yield can opt for emerging markets (EM) using an actively managed strategy with ETFs like the Global X Emerging Markets Bond ETF (EMBD) . EMBD aims to provide investors with strategic exposure to the growing universe of emerging market debt.
The fixed income investing climate remains fraught with challenges, but advisors can deliver superior approaches with model portfolios One option to go on the offensive with the WisdomTree Fixed Income Model Portfolio . “This model portfolio is focused on a diversified stream of income.
It can be challenging to handle a bond bear market, a period during which investors drive bond prices down and yields—which move inversely to prices—higher. The good news is that the worst of this phase of the bond bear market may be over, and you can take steps to help mitigate the impact of increased volatility and higher interest rates.
As default rates among low-rated U.S. companies dropped to their lowest level in months, fixed income investors have grown more “risk-on.” The iShares iBoxx $ High Yield Corp Bond ETF (NYSEArca: HYG) increased 0.9% year-to-date while the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) fell 4.8%.
As Treasury bond yields continue to tick higher, puts corporate bonds may be in a bind as fixed income investors increasingly opt for government bonds with less default risk. As the market continues to decide whether it wants to continue past its pre-pandemic levels or languish further, investors can get quality corporate bond exposure with assets like the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) .
