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By Kevin Flanagan
With the first highly anticipated Federal Reserve rate cut now in the books, I wanted to continue our Money in Motion theme for fixed income investors. As we have witnessed since the September FOMC
Money In Motion: A Barbell For Rate Cuts
Summary
- Investors can use a barbell strategy aiming to balance short-term income opportunities and lock in yields with potential returns if long-term rate declines in an uncertain bond market.
- Shifting to a 60/40 blend of WisdomTree’s Floating Rate Treasury Fund and Yield Enhanced U.S. Aggregate Bond Fund may allow investors to use a time-tested, user-friendly solution.
- This flexible approach delivers a potential yield advantage of 51 basis points over the benchmark with only a little more than one-third of the duration risk, positioning portfolios for fluid rate environments into 2025.
In 2006, WisdomTree launched with a big idea and an impressive mission — to create a better way to invest. We believed investors shouldn’t have to choose between cost efficiency and performance potential, so we developed the first family of ETFs designed to deliver both. Today, WisdomTree offers a leading product range that offers access to an unparalleled selection of unique and smart exposures.