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Yield Curve 101: The Ultimate Guide for ETF Investors

By: ETFdb
Fixed income exposure has been a staple for many investors, as historically these products have offered steady sources of current income as well as relatively low levels of risk. Often referred to as the “safe haven” asset class, bonds have typically been the go-to investment for those nearing retirement and those wanting to park their assets in something safer during volatile environments [see also Want A Simple, 3-ETF Portfolio? Here are 25 of Them]. Since the unprecedented rounds of quantitative easing by the Federal Reserve, however, bonds have not exactly followed their fundamentals. With the central bank keeping interest rates artificially low, yields on Treasury and investment-grade bonds have subsequently fallen, forcing investors to look towards other asset classes on the hunt for yield. Now that the Fed is scaling back its massive bond buying program and has announced its intentions to raise interest rates sometime in the next year [...] Click here to read the original article on ETFdb.com. Related Posts: August ETF Roundup: Launches, Filings, and Closures Bond ETFs: Biggest Winners & Losers YTD Treasury ETFs: Filling In The Duration Spectrum iPath Rolls Out Eight New Treasury ETNs 6 Bond ETFs Feeling the Love in 2014
Fixed income exposure has been a staple for many investors, as historically these products have offered steady sources of current income as well as relatively low levels of risk. Often referred to as the “safe haven” asset class, bonds have typically been the go-to investment for those nearing retirement and those wanting to park their assets in something safer during volatile environments [see also Want A Simple, 3-ETF Portfolio? Here are 25 of Them]. Since the unprecedented rounds of quantitative easing by the Federal Reserve, however, bonds have not exactly followed their fundamentals. With the central bank keeping interest rates artificially low, yields on Treasury and investment-grade bonds have subsequently fallen, forcing investors to look towards other asset classes on the hunt for yield. Now that the Fed is scaling back its massive bond buying program and has announced its intentions to raise interest rates sometime in the next year [...]

Click here to read the original article on ETFdb.com.

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