December 5, 2023 6:18 PM | 2 min read
Options 101: Ready to Shift 2023 Into High Gear Ahead of 2024?
In a market primed for success with halted rate hikes, slowing inflation, and bullish outlook from big banks, Options Starter is your key to capitalizing on these opportunities. Unlock market-winning strategies now with Options Starter. Grab your 90% discount here.
In recent weeks, several bond exchange-traded funds (ETFs) have experienced a significant surge in inflows, indicating a heightened interest among investors.
This shift coincided with a market that significantly upped bets on Federal Reserve rate cuts for 2024, backed by a robust and ongoing disinflationary trend in the U.S. economy.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you’ll also get Benzinga’s ultimate morning update AND a free $30 gift card and more!
Speculators have gone as far as factoring in an initial rate cut as early as March 2024, with whispers of a total of five rate cuts by December 2024.
But which bond ETFs are currently piquing investors’ interest?
From ‘Cash-Like’ to ‘Equity-Like’
While the third quarter in 2023 witnessed a notable uptick in inflows into cash-linked bond ETFs, primarily those investing in short-dated Treasury bonds and bills, the latest trends are veering towards more aggressive fixed-income strategies.
Before You Buy That Next Gift, Invest In Your Future With Options
Want to become an options master? In his special 90% discount, Nic Chahine will give you full access to his top options plays, including strategies he’s used to bag two-digit winners. Learn Nic’s time-tested strategies ASAP. Buy here for only $0.99.
Investors are strategically positioning themselves in anticipation of an imminent U-turn in Fed’s monetary policy stance, eyeing a select group of bond ETFs that have weathered the storm during the recent spate of interest rate hikes.
Their bullish stance on riskier bond ETFs underscores a burgeoning belief that the bond market landscape could undergo a substantial recalibration in the coming months, as they brace for a more accommodating monetary policy environment.
These ETFs encompass a diverse range, including long-term Treasury bonds, emerging-market bonds, and high-yield corporate bonds.
Top 10 Bond ETFs by Fund Inflows in the Past Month
| Name | Fund Flows (1-month) |
|---|---|
| iShares Trust – iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:HYG) | $3.69 bn |
| iShares Trust – iShares Core U.S. Aggregate Bond ETF (NYSE:AGG) | $2.62 bn |
| SPDR Series Trust – SPDR Bloomberg High Yield Bond ETF (NYSE:JNK) | $1.99 bn |
| iShares Trust – iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ:EMB) | $1.89 bn |
| iShares Trust – iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) | $1.62 bn |
| Vanguard Bond Index Funds – Vanguard Total Bond Market ETF (NASDAQ:BND) | $1.56 bn |
| iShares Trust – iShares Broad USD High Yield Corporate Bond ETF (NYSE:USHY) | $1.31 bn |
| Vanguard Scottsdale Funds – Vanguard Long-Term Treasury ETF (NASDAQ:VGLT) | $665.99 bn |
| Vanguard Charlotte Funds – Vanguard Total International Bond ETF (NASDAQ:BNDX) | $641.06 bn |
| iShares Trust – iShares 5-10 Year Investment Grade Corporate Bond ETF (NYSE:IGIB) | $216.67 bn |
Read Now: Gold’s Record High: Why Haven’t Gold Miners Followed Suit?
Photo: Shutterstock
Options 101: Ready to Shift 2023 Into High Gear Ahead of 2024?
In a market primed for success with halted rate hikes, slowing inflation, and bullish outlook from big banks, Options Starter is your key to capitalizing on these opportunities. Unlock market-winning strategies now with Options Starter. Grab your 90% discount here.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read More: Investors Pour Billions To Aggressive Bond ETFs, Banking On Multiple Fed Rate