SPIB - SPIB: The Right Part Of The Cycle

2024-06-03 10:25:10 ET

Summary

• High-quality bonds may outperform stocks in the near future, with the potential for increased credit risk.
• SPDR® Portfolio Intermediate Term Corporate Bond ETF offers a low-fee option for income-minded investors to boost their fixed-income yield.
• The SPIB ETF provides broad diversification, strong yield, and low-cost exposure, but there is still some credit risk to consider.

I continue to believe that we are nearing the part of the investment cycle where high-quality bonds outperform stocks. The brutality of the bond duration bear market over the last several years is unlikely to ever be repeated. Having said that, it was a duration-only bear market. Credit risk never increased in this, and I suspect there will come a time when that changes. If I’m right, and you agree, then you probably want to consider something like the SPDR® Portfolio Intermediate Term Corporate Bond ETF ( SPIB ) given that the fund has some duration (positive in my view) without a significant amount of credit risk....

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