When it comes to investing in bonds, there are some expert recommendations that you might want to consider. According to Todd Rosenbluth, an ETF expert at VettaFi, the iShares 20-year Treasury ETF (TLT) is poised to offer the biggest returns this year. Additionally, the Vanguard Intermediate-Term Corp Bond (VCIT) is another product that he believes will provide a good return on investment. Rosenbluth suggests that these long-term and intermediate-term products are the best bet for investors when it comes to bonds.
Rosenbluth explains that while short-term products were popular last year, they may not have the same earning potential this year. He reasons that staying invested in longer-term products will be more beneficial, especially if the Federal Reserve cuts interest rates more than expected.
Benjamin Slavin, the global head of ETFs at BNY Mellon, also shares his insights on the shift in investor behavior when it comes to bond ETFs. He notes that there has been a movement of money out of short-term government ETFs and money market funds and into intermediate-duration products.
The trend seems to be driven by the desire to lock in higher yields and potentially benefit from capital appreciation as interest rates increase. Both advisors and retail investors are seeking to capture these opportunities in the bond market, according to Slavin.
These expert insights offer valuable guidance for investors looking for opportunities in the bond market this year. By considering the advice of professionals like Rosenbluth and Slavin, you can make informed decisions about how to position your bond investments for the best returns.
As always, it’s important to carefully consider your investment strategy and consult with a financial advisor before making any decisions. The bond market can be complex, and having the right guidance can make a significant difference in your investment success. So, consider these expert recommendations and see if they align with your investment goals. Disclaimer: This article provides general information only. It is not intended to be financial advice or a recommendation. Be sure to do your own research or consult a financial professional before making any investment decisions.
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