Enhance Yield with a Barbell Strategy
With uncertain Fed and global policy, fixed income investors may be struggling to position their portfolios. In times like these, we believe the best approach may be to use a time-tested strategy.
What is a Barbell Investing Strategy?
We use two of our fixed income Funds in the barbell approach, the WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY), and the WisdomTree Floating Rate Treasury Fund (USFR) to seek a balance between long-term income potential and short-term duration reduction. The desired outcome? Enhanced yield and lower interest rate risk.
Commentaries from Kevin Flanagan
Over the last month, the combination of U.S. monetary and fiscal support has come at not only breakneck speed but, perhaps more importantly, at amounts that were almost unimaginable just a few months ago. Kevin Flanagan provides a solution for fixed income investors who might be feeling a bit dazed and confused.
While 2019 thus far has been, generally, a year of falling rates, going forward, the path seems less certain for a host of reasons. Against this investment backdrop, we continue to advocate for investors to consider the barbell approach when looking for fixed income solutions for 2020 and beyond.
As widely expected, the Federal Reserve once again voted to cut rates at its October FOMC meeting, the third time in 2019. The question that now comes to mind is whether the third time’s a charm.