Fed Cuts Rates—
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 strategy? We use two of our fixed income Funds, USFR and AGGY, to seek a balance between long-term income potential and short-term duration reduction. The desired outcome? Enhanced yield and lower interest rate risk.

 

Kevin Flanagan, WisdomTree’s Head of Fixed Income Strategy, joins NYSE’s Judy Shaw and Matt Kobach for an episode of What’s the Fund to discuss the barbell strategy.

NYSE Issuer Spotlight: Barbell Q&A

 

Kevin Flanagan meets with the Founder & CEO of RIA Channel, Julie Cooling, to discuss how fixed income investors can potentially enhance yield with a WisdomTree barbell strategy.


Commentaries from Kevin Flanagan

Like a Good Neighbor, the Fed Is There

The Fed has done what was widely expected−it cut the federal funds target range by a quarter-point. And while you could say the Fed is back in data-dependent mode, it appears as if monetary policy is still leaning toward another rate cut this year.

 

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No Heavy Lifting Required

When looking at the money and bond markets, they almost seem to be saying to the Federal Reserve (Fed), “Would you please cut rates already?” Against this backdrop, we continue to advocate for a solution designed to help fixed income investors navigate the waters that loom ahead without making a high conviction bet on where rates are headed: the barbell strategy.

 

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“Barbell”ing Can Get the Job Done

It’s hard to say where interest rates are headed in this uncertain landscape. Kevin Flanagan offers fixed income investors a strategic solution designed to help navigate the choppy waters that could potentially loom ahead without making a high-conviction bet on where rates are headed.

 

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The WisdomTree Barbell Strategy

 

When USFR is used in conjunction with AGGY we believe it's possible to generate the yield of the Bloomberg Barclays U.S. Aggregate Bond Index (Agg) with significantly less duration, or interest rate risk.

YIELD ENHANCED U.S. AGGREGATE BOND FUND

 

The WisdomTree Yield Enhanced U.S. Aggregate Bond Fund seeks to track the price and yield performance, before fees and expenses, of the Bloomberg Barclays U.S. Aggregate Enhanced Yield Index.

Learn more about AGGY
The Case For the WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY)

 


Basis Points Podcast with Kevin Flanagan