Higher bond yields are attracting more attention and more money. US bond ETFs pulled in almost $54 billion in August. Core and core-plus bond ETFs make up about $8.5 billion of that. These funds tend to provide shelter during market storms to ease a portfolio’s rocky moments. They also provide steady and predictable income. As bond rates sit higher than they have in the past, how can you benefit while also taking a conservative approach? Dan Sotiroff is the associate director of US passive strategies research for Morningstar.

Why Higher Bond Yields Can Be 'a Great Thing'

On this episode:

00:00:00 Welcome
00:00:50 How core and core-plus bond ETFs work
00:04:22 Billions flowing into core and core-plus bond ETFs this year

00:05:55 How active fund managers capitalize on higher bond rates
00:08:36 What higher bond yields mean for income investors
00:09:51 Core bond ETFs earning Gold and Silver ratings
00:11:17 Core-plus bond ETFs Morningstar analysts like

Watch more from Morningstar:

How AI Is Taking Over Your Portfolio
401(k) Millionaires: Here's How to Avoid Going Broke in Retirement
New ETFs Are Launching Fast. Proceed With Caution

Follow Morningstar on social:

Facebook: https://www.facebook.com/MorningstarInc/
X: https://x.com/MorningstarInc
Instagram: https://www.instagram.com/morningstarinc/
LinkedIn: https://www.linkedin.com/company/morningstar/

This episode is sponsored by Vanguard: https://advisors.vanguard.com/engagement/fixed-income

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Don’t Make This Mistake When Chasing Higher Bond Yields

Investing Insights

Don’t Make This Mistake When Chasing Higher Bond Yields