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☆ Income investors go back to school. These munis offer an opportunity as property values rise
▼ + stars: | 2023-09-07 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Local municipal general obligation bonds help fund operations or specific projects. Right now, yields for local general obligation munis are historically attractive at about 3.7%, said Cooper Howard, fixed income strategist for the Schwab Center for Financial Research. In general, the credit quality of local general obligation munis are pretty solid, said Richard Schwam, a municipal credit research analyst at AllianceBernstein. "There are so many general obligation bonds in the country that you can stay away from anything too tiny. Weinberg also recommended diversifying with multiple states, but cautioned that buying a bond outside of your state means you'll likely be subject to state income tax.

Persons: It's, Cooper Howard, Howard, Richard Schwam, Schwam, Schwab's Howard, bode, Ian Weinberg, Weinberg Organizations: Schwab Center, Financial Research, AAA, San, Family Wealth, Pension Management, Schwab's Municipal, Bond Locations: California, New York, San Francisco

☆ This income fund has a yield of more than 5%, and is cheap compared to its peers
▼ + stars: | 2023-09-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Weitz Core Plus Income Fund (WCPNX) , which Carney co-manages with Nolan Anderson, received five stars and a bronze rating from Morningstar. Aggregate Bond Index]," Carney said. Enter, asset-backed securities. Asset-backed securities (ABS) follow in second place, making up 27.6% of the portfolio. As a result, participating in the asset-backed securities space requires a granular level of due diligence.

Persons: Tom Carney, Weitz, Carney, Nolan Anderson, Morningstar, WCPNX, There's, that's, Fannie Mae, Freddie Mac Organizations: Morningstar, Bloomberg Barclays U.S, Universal Bond, SEC, Bloomberg U.S, Aggregate Bond, Federal Reserve Bank of New, BBB, U.S, Fed Locations: Federal Reserve Bank of New York

☆ Goldman sees 'significant investment potential' in green bonds. Here's how to invest in them
▼ + stars: | 2023-08-28 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

Investors searching for yield and a way to make a positive impact on the environment may want to consider green bonds. BGRN 1Y mountain iShares USD Green Bond ETF 1-year performance Green bonds are considered part of the growing asset class known as GSS+: green, social, sustainability, sustainability-linked and transition bonds, according to Morningstar. What sets green bonds apart Green bonds tend to have longer durations than their general counterparts. The firm's parent company, TIAA, invests in green bonds through its TIAA-CREF Green Bond Fund (TGROX) . "The U.S. plays an important role in the green bond market, without any doubt.

Persons: Kay Haigh, Management's, Green, Morningstar, they've, Shannon Kirwin, Bram Bos, Stephen Liberatore, Liberatore, It's, Goldman's Bos, Bos Organizations: Green Bond, Goldman, Morningstar, Goldman Sachs Asset Management, Green Bond Fund, Federal, Treasury Locations: Goldman Sachs, Nuveen, U.S, Europe

☆ BlackRock keeps pumping the brakes on a new fund amid state-level ESG criticism
▼ + stars: | 2023-08-24 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +5 min

Last fall, BlackRock filed to launch an ESG municipal bond exchange-traded fund. It is in essence an ESG version of its major $32 billion municipal bond fund. The delay for the world's largest ETF provider has puzzled some in the industry. This year Goldman Sachs launched its first municipal bond ETF, which takes into account social and environmental factors. BlackRock's ESG municipal bond ETF has another wrinkle.

Persons: Larry Fink, Wesley Gray, Matthew Tuttle, they've, Goldman Sachs, Fink, Salim Ramji, Tony Kelly Organizations: BlackRock, Securities and Exchange Commission, SEC, HIP Muni Bond ETF, Alpha, Republican, Tuttle Capital Management, Goldman, HIP Investor, HIP Locations: York, Arizona , Texas, South Carolina, BlackRock, Connecticut

☆ Muni bonds are cheap, but they may hide a tax surprise. How to prepare
▼ + stars: | 2023-08-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

High-income investors, especially those in the 32% marginal federal income tax bracket, appreciate that munis offer income that's exempt from federal levies. Paying for a discount Bond yields and prices move opposite to each other. That means municipal bonds are trading at discounts, which can come with tax ramifications if they're too cheap versus the bond's par value, or the amount the issuer will repay the investor at maturity. Consider an investor who is purchasing a 10-year municipal bond with a par value of $10,000, trading at $9,750. Investors also shouldn't overlook the fact that the muni bond is still providing them with tax-free income in their portfolios.

Persons: Bond, Cooper Howard, Charles Schwab, Tim Steffen, Baird, Steffen Organizations: Federal Reserve, Bond, SEC, Investors

☆ Investors are pulling money out of stock ETFs for the first time in over a year
▼ + stars: | 2023-08-22 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +1 min

Investors are voting with their cash in August and shifting money away from funds that focus on stocks, according to Strategas. The S & P 500 has slumped 4% in August, as the stock market appears to be caught in a late-summer doldrum and interest rates have spiked. Money market funds took in +$40 Bn last week, plus ultra-short duration bond ETFs saw over $1 Bn inflows on Thursday, a threshold usually reserved for uneasy environments," Sohn said in a note to clients Tuesday. Money market funds have been particularly popular this year, as high interest rates have made them attractive places for consumers and investors to park their short-term cash. Money market assets have increased $749 billion over the past six months, according to Strategas, which includes the period of the regional bank crisis earlier this year.

Persons: Todd Sohn, Sohn Organizations: Trust Locations: outflows

☆ Investors are jumping back into short-term bond funds as rates rise
▼ + stars: | 2023-08-18 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

The recent jump in market interest rates may have caught some ETF investors off guard, and they are now shifting back into short-term bond funds that can better withstand rising yields. Bond yields move in the opposite direction of price, and long-term bonds see their prices hit harder when rates rise. As a result, investors are shifting into short-term bond funds. The following short-term bond ETFs were in the top 10 for net inflows over the past week, according to FactSet. The upward move for bond yields has been particularly acute in the long end of the yield curve.

Persons: Claudio Irigoyen, Fitch, Irigoyen, TLT Organizations: Federal, Treasury, Treasury Bond ETF, Bloomberg, Bank of America Locations: U.S, Japan

☆ This bond ETF is a bet on ‘higher for longer’ and uses options to find extra income
▼ + stars: | 2023-08-11 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

A growing number of investors appear to be trying to squeeze additional cash from long-term bonds with the iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) . "Popular Treasury ETFs, such as [iShares 7-10 Year Treasury Bond ETF ] and [ iShares 20+ Year Treasury Bond ETF ], could lose another 4-8% if yields spike by the end of September," Woodard said. The TLTW presents a strategy to thread the needle and offset declines in bond prices with income from selling call options. The fund works by buying the iShares 20+ Year Treasury Bond ETF (TLT) and then selling call options with strike prices roughly 2% above the market price of the underlying fund. The TLTW also comes with a higher cost than vanilla Treasury funds.

Persons: Bond, …, Jared Woodard, Woodard, iShares, Steve Laipply, TLT, Laipply Organizations: Federal, Bank of America, Treasury, ETF, Treasury Bond ETF, BlackRock, SEC

☆ Soft landing hopes are drawing money back into this risky asset that’s paying 8% yield. How to navigate
▼ + stars: | 2023-08-10 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

High yield mutual funds and exchange traded funds saw inflows of $1.9 billion in July, Barclays said, citing Lipper data. High yield bonds are corporate issues that are rated below BBB, meaning they have a higher risk of default compared to their investment-grade counterparts. "When we are in junk and high yield names, we prefer loans – more senior loan positions rather than high yield." Novak added outside of high yield loans, the firm's other big fixed income play is higher quality investment grade bonds. "We don't think taking a heroic position [in high yield] makes a whole lot of sense in our view," he said.

Persons: Dow Jones, Bill Zox, it's, Zox, Bryan Novak, Novak, Brandywine's Zox, nonbank financials, Bill Ahmuty, Lawrence Gillum, Michael Bloom Organizations: Barclays, Fitch, Management, Brandywine Global, SEC, Astor Investment Management, Corporate, State, LPL

☆ Guggenheim predicts a moderate recession in 2024. Here are three steps to shore up your portfolio
▼ + stars: | 2023-08-09 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

A soft landing for the economy is looking unlikely, and now is the time to prepare your portfolio for a rocky 2024, according to Maria Giraldo of Guggenheim Investments. Contrary to the soft landing — and interest rate cuts — expected by many investors, Guggenheim sees a moderate recession looming in the new year. Instead, Guggenheim predicts both an economic downturn and lower interest rates in 2024. "We're seeing the impact of higher interest rates and higher funding costs on banks." She noted that investment-grade corporate bonds are yielding 5.5% to 6%.

Persons: Maria Giraldo, Guggenheim, Giraldo, Schwab Organizations: Guggenheim Investments, SEC

☆ A Wall Street titan who called the 2008 recession shares 7 top trades to make before the US economy enters into another downturn with stocks 'priced for perfection'
▼ + stars: | 2023-08-02 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

Look at the Treasury yield curve and The Conference Board's Leading Economic Index, says Rosenberg, who called the 2008 recession. He added: "Even if we could argue about a recession or a soft landing, you have Nirvana priced into the stock market as an asset class right now." 7 places for returns as a recession loomsThe first place Rosenberg said he's bullish on is the Treasury market. Treasury bills have durations of one year or less, while Treasury bonds have durations of 20 years or more. The iShares MSCI Japan ETF (EWJ) is one way to invest in Japanese stocks.

Persons: David Rosenberg, Treasurys, Rosenberg, there's, he's, bullish, underperformance, Warren Buffett Organizations: Treasury, Conference, CNN, Rosenberg Research, Treasury Bond ETF, Regional Banking, Vanguard Utilities, Real, Fidelity MSCI Communication Locations: U.S, Japan

☆ Investors are shifting their bond bets into this type of ETF
▼ + stars: | 2023-08-02 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

Investors appear to be growing more comfortable with the path for interest rates and are shifting their fixed income bets accordingly. The list of the most popular bond funds by inflows in recent weeks is dominated by large passive funds. The iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Intermediate-Term Treasury ETF (VGIT) have both been two of the 10 most popular ETFs of any type over the past month, according to FactSet's flow data. The iShares 3-7 year Treasury Bond ETF (IEI) and the Vanguard Intermediate-Term Bond ETF (BIV) have also seen sizable inflows recently. Broad bond funds will often have longer duration than short-term funds, even if there is no reference to time frame on the label.

Persons: Scott Chronert, Fitch, — CNBC's Michael Bloom Organizations: Citi, Federal Reserve, Treasury Bond ETF, Treasury, Bond ETF, Bond Locations: outflows

There are two likely scenarios: The Fed raises its fed funds rate, but Powell signals the inflation fight is far from over. Market rates are likely to shoot higher, benefiting a select group of stocks highlighted below, while causing the broader market to decline. In order to do this, we used the short-term bond fund, the iShares 1-3 Year Treasury Bond ETF, as our proxy for the bond market. Since rates increase when bond prices fall this gives us the stocks that could win today if rates increase. If rates move higher on the Fed, Primerica can charge higher rates for its insurance and financial products.

Persons: Jerome Powell, Powell, Marcelli Organizations: Federal Reserve, Fed, UBS Global Wealth Management, Reserve, CNBC, Russell, Treasury Bond ETF, Primerica, PayPal

☆ A millionaire who retired at 36 and invested in 9 index funds shares how one would have yielded him an extra $680,000 if he had picked it instead — and the funds he's decided to sell
▼ + stars: | 2023-07-22 | by ( Laila Maidan | ) www.businessinsider.com time to read: +6 min

He learned about target-date funds, which pool a basket of individual funds designed to rebalance the securities based on your years to retirement. Then, he compared the result to having 100% of the amount invested in a target-date index fund called the Fidelity Freedom Index 2050 Investor (FIPFX). "If I could go back in time, I would dump every penny to my name in a single target-date index," Schneider said. Pie chart breakdown of nine initial index funds Portfolio Visualizer, Jeremy Schneider. Additionally, holding a target-date fund in a regular brokerage account instead of a tax-advantaged account may not be tax optimal.

Persons: Jeremy Schneider, wouldn't, Schneider, patted, Visualizer, it's, FIPFX Organizations: Finance, DB, Fidelity

☆ How to boost the cash flow even more from your fixed income investments
▼ + stars: | 2023-07-20 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

With interest rates peaking, now might be a good time to boost the cash flow you're generating in your fixed income portfolio. A core and satellite approach to boost cash flow For liquidity, UBS recommends a core-satellite approach. You also know when you'll be getting your income payments from the bonds, which generally pay interest twice a year. The first is "everyday cash," which means investors should be stashing money that they can readily withdraw if needed. The second tier is "savings cash" for money that you can afford to lock up for a short period of time.

Persons: US1Y, Marianna Mamou, you'll, Mamou, Michael Bloom Organizations: UBS, Bread Financial, Bread, Investors, SEC

With the second half of the year now underway, investors may want to take another look at their fixed income portfolio. High yields have been a boon to income investors, as the Federal Reserve increased interest rates over the past year. "For more of our clients, we're looking to have the fixed income of the portfolio provide lower correlation and income," he said. Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, generally prefers securitized assets such as asset-backed and mortgage-backed securities. "You can't think of high yield bonds in the same thought as Treasurys," said Cox of eToro.

Persons: James Franke, Sonal Desai, She's, We're, It's, Desai, Franke, Rothschild, Callie Cox, Greg Wilensky, Janus Henderson, Cox Organizations: Federal Reserve, Treasury, Rothschild Investment, Franklin, Janus, Janus Henderson Investors Locations: Treasurys, U.S, eToro

☆ 3 reasons to stick with bonds, according to UBS
▼ + stars: | 2023-07-14 | by ( Fred Imbert | ) www.cnbc.com time to read: +1 min

Still, UBS advised its clients to stay overweight bonds, a traditionally safer asset relative to equities. Mark Haefele, CIO of global wealth management at UBS, pointed to three reasons for the bank's preference toward bonds: Haefele said that "good macro news is already priced into the S & P 500, in our view, setting the bar higher for the rest of the year. There are several exchange traded funds investors can use to gain exposure to bonds One of them is the Vanguard Short-Term Bond ETF (BSV) . The fund has a year-to-date total return of 1.95%, according to FactSet. The fund has a total return of 3.94% in 2023, per FactSet, and an expense ratio of 0.15%.

Persons: Mark Haefele, Haefele, —, Michael Bloom Organizations: UBS, Federal, Bond, Treasury Bond ETF

☆ This high-yield bond fund with 'conservative' assets offers 10% in dividends
▼ + stars: | 2023-07-14 | by ( Ganesh Rao | ) www.cnbc.com time to read: +5 min

The Liontrust GF High Yield Bond fund has become notable thanks to one thing: A 10% dividend yield. "It's got a very high-quality credit rating, I would argue," said Donald Phillips, one of the portfolio managers behind the fund. fund manager, Liontrust GF High Yield Bond fund Donald Phillips It also holds debt considered relatively riskier by credit rating agencies but one that Phillips believes has been mispriced. The value of a credit default swap increases when the risk of default rises. He highlighted that their fund yields higher returns and charges lower fees than many similar index ETFs.

Persons: It's, Donald Phillips, Phillips, Fortescue, it's, Biden Organizations: Fortescue Metals, Liontrust, ETF Locations: Europe, CeramTec

☆ This ETF's popularity shows investors are confident inflation has calmed down
▼ + stars: | 2023-07-14 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

The iShares 20+ Year Treasury Bond ETF (TLT) raked in nearly $2 billion of inflows over the past week, according to FactSet. It has been the most popular fixed income ETF this year, with almost $14 billion in net flows. No other bond ETF has brought in more than $10 billion. With inflation declining and the Fed slowing its pace of hikes, investors do appear to be shifting into longer-dated bonds and away from inflation trades, said Steve Laipply, global co-head of bond ETFs at BlackRock. Short-term ETFs appeared to be more popular with investors last year when the Fed was hiking interest rates aggressively.

Persons: Steve Laipply, Laipply, Schwab, FactSet Organizations: Treasury Bond ETF, Treasury, Treasury ETF Locations: U.S, BlackRock

About Ally Invest Robo PortfoliosAlly Invest Robo Portfolios is an Ally Financial-affiliated automated account offering investing without fees for US residents. Ally Invest Robo Portfolios FeesAlly Invest Robo Portfolios doesn't charge trading fees, advisory fees, annual fees, or rebalancing. Methodology: How We Reviewed Ally Invest Robo PortfoliosAlly Invest Robo Portfolios is a robo-advisor that was reviewed using Personal Finance Insider's rating methodology for investing platforms. How Ally Invest Robo Portfolio ComparesAlly Invest Robo Portfolios vs. Fidelity GoIf you're a hands-off investor in search of automated portfolio management, Ally Invest Robo Portfolios and Fidelity Go are both popular robo-advisors. Ally Invest Robo Portfolios vs. Schwab Intelligent PortfoliosAlly Invest Robo Portfolios and Charles Schwab's most basic automated account, Charles Schwab Intelligent Portfolios, both offer competitive automated investing services.

Persons: Ally, Ally Invest's, Ally Invest, it's, It's, you'll, Roth, Charles Schwab, Schwab, Charles Schwab's, brokerages, Rickie Houston, Rickie, He's, Read, Elias Shaya, Elias, Tessa Campbell Organizations: Reading Chevron, Financial, Ally Invest, Better, Bureau, BBB, Financial Inc, Invest, IRS, Roth IRA, Investment, Vanguard, Fidelity, Finance, Schwab, Business, Boston Globe, Yahoo News, Boston University, Boston University News Service, CUNY College of, New York Presbyterian Hospital Locations: New York City, CUNY College of Staten Island, Lebanon

☆ Where to invest $10,000 right now if you want to generate the most income, without a ton of risk
▼ + stars: | 2023-07-12 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

Meanwhile, preferred securities can see yields around 7%. The Fed's rate hikes also sweetened yields on money market funds and certificates of deposit . Yet what is the best avenue for someone who is looking to generate the most income on a $10,000 investment — without taking on a lot of risk? The ICE BofA Fixed Rate Preferred Securities index, which tracks the performance of fixed-rate preferred securities, has a yield to maturity of 7.1%. "Right now you can't do better … than just owning short- to intermediate term high-grade fixed income," he said.

Persons: There's, Tom Graff, Mitch Goldberg, Goldberg, laddering, you'll, Ian Weinburg, Weinberg, Tim Ghriskey, Snyder, haven't, Ghriskey, Bonds, he'd, Graff Organizations: Treasury, Federal Reserve, Federal, CNBC Pro, Family Wealth, Pension Management, Ingalls, ICE, Securities, Citigroup, XIII, Index, SEC Locations: Baltimore, Melville , N.Y, Woodbury , N.Y, New York, Treasurys, preferreds

☆ New ETFs give income investors different ways to play volatile bond yields in the second half
▼ + stars: | 2023-07-07 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

The Pimco Multisector Bond Active ETF (PYLD) launched in June, giving investors a way to follow one of the biggest names in fixed income during the volatile bond market. As the fixed income ETF market matures, major asset managers are trying their hand at multisector bond funds. Recent launches include Capital Group's U.S. Multisector Income ETF (CGMS) and BlackRock's Flexible Income ETF (BINC) , which is co-managed by Rick Rieder , the firm's chief investment officer for global fixed income. For financial advisors or investors who want to make investment decisions themselves, there are more targeted bond funds available. "There's a pretty long runway for investors to increase their allocation to fixed income.

Persons: Rick Rieder, Dan Ivascyn, Sonali Pier, D.J, Tierney, you've, Schwab, Schwab's Tierney Organizations: Treasury, Capital, Multisector, Pimco, CNBC, Schwab Asset Management, Fed Locations: Capital Group's, U.S, iShares

☆ Bond yields and volatility are spiking. These ETFs should benefit
▼ + stars: | 2023-07-06 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +3 min

Wall Street's glide toward higher stocks and falling bond yields was jolted into reverse Thursday, as surprisingly strong economic data sent bond yields soaring and stocks tumbling . For example, the iPath Series B S & P 500 VIX Short-Term Futures ETN (VXX) and the ProShares VIX Short-Term Futures ETF (VIXY) serve as bets that investor expectations of volatility will go up from here. The UVXY is designed to provide 1.5-times returns of the VIX short-term futures and was up about 8% in midday trading. Rising yields Profiting from rate spikes through bond funds can be a bit tricky. The biggest fund in that space is the iShares Floating Rate Bond ETF (FLOT) , which was little changed on Thursday.

Persons: PFIX, FLOT Organizations: Treasury, Dow Jones, US Treasury

☆ Investors are betting on stocks to keep rising in the second half with these ETFs
▼ + stars: | 2023-06-30 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +1 min

Many investors appear comfortable betting on stocks to continue rising after a surprising strong first half, according to fund flow data. Investors even plowed $1.9 billion into the Invesco QQQ Trust ETF (QQQ) , which is up almost 40% so far this year. The flows are notable because investors have been somewhat reluctant to put more money in stocks this year despite the rally. Aggregate Bond ETF (AGG) and the Vanguard Total Bond Market ETF (BND) also saw inflows this week, so some investors are still hedging their bets on stocks. With investors starting to chase the recent rally, all major regions except Europe saw inflows.

Persons: Magesh Kumar Chandrasekaran, — CNBC's Michael Bloom Organizations: Trust, Aggregate Bond, Vanguard, Bond Market, Barclays Locations: Europe

☆ This little-known income play offers portfolios price stability and yield
▼ + stars: | 2023-06-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Floating rate notes' short duration gives them a measure of relative price stability, while offering investors' portfolios some support through variable income. It's the prospect of higher rates for longer, along with the inverted yield curve, that make floating rate notes an attractive play for some. For his clients, Winter has committed between a quarter and a third of investors' fixed income allocation to floating rate notes. "It's lower coupon rates versus the opportunity to lock in high fixed rates now if you consider the environment," said Collin Martin, fixed income strategist at Charles Schwab. That means in a recession, you may not get an increase in floating rate note prices to offset a decline in equities, he said.

Persons: Allison Bonds, Bonds, Jerome Powell, Paul Winter, Winter, aren't, Collin Martin, Charles Schwab Organizations: State Street's U.S, Treasury Bond ETF, Federal Reserve, Federal, Five Locations: Treasurys

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