This bond ETF will deliver a big return in 2024: VettaFi’s Rosenbluth

This bond ETF will deliver a big return in 2024: VettaFi’s Rosenbluth

Long-term returns could be the best bond investment this year, according to an exchange-traded fund expert.

“The iShares 20-Year Treasury ETF (TLT) will get the best bang for your buck [and] some of the intermediate-term products such as the Vanguard Intermediate-Term Corp Bond (VCIT) will get good value,” VettaFi’s Todd Rosenbluth told CNBC’s “ETF Edge” on Monday.

Rosenbluth added that while short-term products were very popular last year, they will “largely fall by the wayside or earn slightly more than their total income.”

The company’s head of research argues that investors should stay in longer-term products to benefit if the Federal Reserve cuts interest rates more than expected.

In the same interview, Benjamin Slavin of BNY Mellon pointed out that while capital flows shifted to ultra-short or short-term government ETFs and money market funds in 2023, the situation changed towards the end of the year.

“We saw a lot of money starting to move from the short end of the curve into the middle duration,” said Slavin, the firm’s global ETF chief.

“You could see a picture emerging where advisors are looking and retail investors are looking to achieve or lock in those higher returns and potentially also get some capital appreciation when interest rates go back up,” he added.


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2024-02-01 15:30:48