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ETF Specialist

Fixed-Income Investors: Face the Facts

Current circumstances are a difficult pill to swallow for many bond investors, but that is no reason to offload your ballast, writes Morningstar’s Ben Johnson.

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A version of this article was published in the June 2015 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here

Financial pundits’ banter about the future direction of interest rates has droned on for years. All of this chatter has caused a great deal of angst amongst investors, many of whom are either saving for or spending their way through retirement and desperately need reliable sources of investment income. Meanwhile, many asset managers have mobilized to capitalize on investors’ fears, launching an array of new products designed to juice yields, mitigate the effects of rising rates, or both. It’s a recipe for bad investor behavior.

Ben Johnson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.