ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Active ETF Channel
  2. TD Ameritrade: Lara Crigger on What Fed Policy Means
Active ETF Channel
Share

TD Ameritrade: Lara Crigger on What Fed Policy Means

Karrie GordonJun 16, 2022
2022-06-16

Lara Crigger, editor-in-chief at VettaFi, recently appeared on TD Ameritrade to discuss the recent Fed meeting that saw a 0.75% interest rate increase and what to anticipate in markets in both the short and long term with host Nicole Petallides.

“I think we’re going to see markets continue to whipsaw for a while as investors process yesterday’s rate hike,” Crigger said.

Bonds experienced enormous amounts of trading volume in the days leading up to the meeting, with Monday’s bond trading volume more than twice its average daily trading volume as investors moved money on rate hike fears.

Looking ahead, Crigger believes that fixed income will benefit in the long term from rising rates, “but there’s going to be some short-term pain.”

So what does it mean for investors? Shorter-duration bonds and short-duration bond ETFs offer less interest rate risk exposure than their longer-term peers and will retain their value during the continued volatility in markets — driven in part by an aggressive Fed that has made clear that it will bring down inflation, even at the cost of recession.

@Vetta_Fi Editor-in-Chief @LaraCrigger joins @NPetallides to walk through some opportunities she sees in this turbulent market: https://t.co/lwqCSUvv01

— TD Ameritrade Network (@TDANetwork) June 16, 2022

Crigger has two pieces of advice for advisors to tell their clients, and for investors in general: “shorten up on duration” in both bonds and equities, and also to consider funds with active management because of the flexibility they can offer in choppy markets particularly.

“At VettaFi, we’re seeing a significant uptick in research around ultra-short-duration bond ETFs — right move in my opinion. Ultra-short helps you play defense against these big rate moves,” Crigger said.

An ETF that falls within this category is the T. Rowe Price Ultra Short-Term Bond ETF (TBUX B-), which offers the combination of both active management and short duration across sectors, including foreign debt, bank loans, municipal bonds, and others that tend to perform better in the current environment.

“That flexibility has mattered in this market. Both in the last month and year-to-date, TBUX has been outperforming its category average by a factor of about two,” Crigger explained. “Plus, it’s only 17 basis points, and that’s on the cheap side for a fixed income ETF, especially an actively managed one.”

Volatility is likely to continue for markets as long as the Fed is raising rates, Crigger believes, creating a painful and challenging environment for investors. Knowing that Fed rates are still coming, however, should allow for advisors and investors to better position their portfolios accordingly into strategies such as active management and ultra-short duration.

For more news, information, and strategy, visit VettaFi.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X