The Federal Reserve is about a month into its rate-cutting cycle, and money market fund yields are already starting to pay less.
That's where short and ultra-short duration bond funds and ETFs may come into play.
An eye on duration Duration is a measure of a bond's price sensitivity when interest rates fluctuate.
In that case, ultra-short bond funds and short-term bond funds might be "a natural landing spot for that cash."
Those ultra-short bond funds have one to three years of duration and offer some stability day to day, Bartolini added.
Persons:
Brett Sheely, Matthew Bartolini, Bartolini, AllianceBernstein's Sheely, —, Vincent Caintic
Organizations:
Federal, Investment Company Institute, State Street Global Advisors, SPDR, SPDR Americas Research, Bond, SEC, Federal Deposit Insurance Corp, .
Locations:
SPDR Americas