Short-term bond ETFs have grabbed investors’ attention after the Federal Reserve projected a longer-than-expected period of high-interest rates. Even though the Fed might hold rates at the next monetary policy meeting, it will unlikely start cutting rates anytime soon. The higher for longer federal funds rate will benefit short-term bond ETFs.
To that end, investors could consider investing in short-term bond ETFs PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT), JPMorgan Ultra-Short Income ETF (JPST), and SPDR Bloomberg 1-3 Month T-Bill ETF (BIL). These ETFs are top-rated in our proprietary POWR Ratings system.
