Don’t Make This Mistake When Chasing Higher Bond Yields

Higher bond yields are attracting more attention and more money. US bond ETFs pulled in almost $54 billion in August. Core and core-plus bond ETFs make up about $8.5 billion of that. These funds tend to provide shelter during market storms to ease a portfolio’s rocky moments. They also provide steady and predictable income. As bond rates sit higher than they have in the past, how can you benefit while also taking a conservative approach? Dan Sotiroff is the associate director of US passive strategies research for Morningstar. 

Why Higher Bond Yields Can Be 'a Great Thing' 

 

On this episode: 

00:00:00 Welcome 
00:00:50 How core and core-plus bond ETFs work 
00:04:22 Billions flowing into core and core-plus bond ETFs this year 

00:05:55 How active fund managers capitalize on higher bond rates 
00:08:36 What higher bond yields mean for income investors 
00:09:51 Core bond ETFs earning Gold and Silver ratings 
00:11:17 Core-plus bond ETFs Morningstar analysts like 

 

Watch more from Morningstar: 

How AI Is Taking Over Your Portfolio 
401(k) Millionaires: Here's How to Avoid Going Broke in Retirement 
New ETFs Are Launching Fast. Proceed With Caution 

 

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This episode is sponsored by Vanguard: https://advisors.vanguard.com/engagement/fixed-income 

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