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iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
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iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
Q: Hello
I hold these two bond funds which are down. Do you think they will rebound if interest rates start to drop?
I certainly could be putting the cash to better use.
Thanks
Jeff
I hold these two bond funds which are down. Do you think they will rebound if interest rates start to drop?
I certainly could be putting the cash to better use.
Thanks
Jeff
5i Research Answer:
With both being 'laddered' bond funds they already have fairly diverse coupons and maturities, but they should still benefit if the yield curve pivots. Bonds have been crushed in the rate hike cycle, and many are expecting them to do very well as rates peak. Both of these ETFs are now, at least, up on the year. We would be OK holding them right now, considering the yield outlook.