In the last two years, investors increased their cash positions in the face of ongoing volatility and risk. While sitting on the sidelines reduces risk, it also means missed return opportunities. High-quality short-term bonds offer several portfolio benefits while putting excess cash to work.
Short-duration exposures and cash alternatives received notable investor flows last year as interest rates and yields rose. Much is uncertain about the intermediate rate narrative. For advisors and investors considering increasing their short-term bond allocations as interest rate concerns spike, there are a few considerations to weigh.
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