Bond Market Sell-Off: 3 of the Best ETFs to Buy Right Now
Key PointsThe Vanguard Financials ETF benefits as banks can charge higher interest rates for loans.
When interest rates rise, bond yields typically increase, which can lead to a decrease in demand for stocks and a potential decline in their share prices. The bond market is currently experiencing a swift sell-off, causing bond yields to rise. The 10-year U.S. Treasury bond yield has reached over 5%, and the Federal Reserve is signaling further short-term rate hikes.
This trend may indicate an era of higher-for-longer interest rates, potentially putting downward pressure on stock prices. However, not all stocks are adversely affected by rising interest rates. Some sectors tend to perform better during periods of higher interest rates. In this article, we will explore three exchange-traded funds (ETFs) that may be advantageous to purchase in anticipation of rising interest rates, potentially making them solid long-term choices for investment portfolios.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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