Investors should consider Bond ETFs before Fed cuts: BondBloxx COO

Investors should consider sticking with fixed income investments, and possibly even increasing them, despite the Federal Reserve’s plans to reduce interest rates this year. BondBloxx co-founder and COO Joanna Gallegos advised against rushing back into equities without exploring the opportunities in fixed income. The 10-year U.S. Treasury note yield has reaccelerated in recent weeks and is currently around 4.31%. Gallegos recommends looking into exchange-traded funds focused on intermediate term bonds to effectively manage interest rate volatility. Morgan Stanley Investment Management’s Tony Rochte also suggests a medium-term strategy with options like the Eaton Vance Total Return Bond ETF (EVTR) for income-generating opportunities. Additionally, Rochte mentioned municipal bond funds, such as the Eaton Vance Short Duration Municipal Income ETF (EVSM), as attractive options in the current environment.

Investors may want to consider sticking with fixed income investments, even as the Federal Reserve plans to cut interest rates. Joanna Gallegos of BondBloxx advises investors not to rush back into equities, but to consider opportunities in fixed income. The benchmark 10-year U.S. Treasury note yield has reaccelerated recently, making intermediate-term bonds a potentially beneficial investment. Tony Rochte of Morgan Stanley Investment Management recommends vehicles like the Eaton Vance Total Return Bond ETF for a medium-term strategy. Municipal bond funds, such as the Eaton Vance Short Duration Municipal Income ETF, also offer attractive income-generating opportunities. These fixed income investments may provide a stable and profitable option for investors in the current market environment.

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