Rates are rising from their lows and investors are starting to fear a rate hike from the Fed later this year. But if rates keep shooting higher, bond investors will likely be crushed.
After all, bond prices and rates have an inverse relationship, meaning that fixed income investors could see big losses on their hands before long. Fortunately, there are a few fixed income ETFs that can help with this situation. Eric Dutram takes a look at two ‘negative duration’ bond ETFs which may be interesting additions for those seeking to ratchet down the risk in their bond portfolios ahead of rising rates later this year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WISDMTR-B USABN (AGND): ETF Research Reports
WISDMTR-MLHYBN (HYND): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research