3 trades for falling interest ratesFor investors concerned about the yield on their cash, one solution might be ultrashort bond funds.
In the last 12 months, ultrashort bond funds have materially outperformed taxable money market funds, returning an average of 6.36% compared to 5.09% for money markets, according to Morningstar.
McCarthy recommends investing in a mix of ultrashort securities such as investment-grade corporates, asset-backed securities, and government securities for diversification purposes.
AdvertisementThe Nuveen Ultrashort Income ETF (NUSB) and the Goldman Sachs Access Ultrashort Bond ETF (GSST) are examples of ultrashort bond funds.
Investors can gain exposure to premium income funds through the SPDR SSGA US Equity Premium Income ETF (SPIN) and JPMorgan Equity Premium Income ETF(JEPI).
Persons:
—, Scott Diamond, Brendan McCarthy, Goldman Sachs, Morningstar, McCarthy, Diamond
Organizations:
Service, Federal Reserve, Equity, Business, Goldman Sachs Asset Management, Bond, Bond ETF, JPMorgan Ultrashort, Investors, JPMorgan Equity
Locations:
Treasurys