How Fixed-Income ETF Investors Can Hedge Their Bets

The bond markethas had its share of volatility in the past year, sending mixed signals to investors.

The Federal Reservehas been pulling out all the stops to keep the economy growing and avoid Japan-like deflation.

At the same time, however, signs of inflation are growing, and investors are taking on more risk for higher yields .

An allocation to bonds can provide income and stability in such an unpredictable environment.

Bears and bulls alike agree that the current sluggish U.S. growth should benefit bonds.

ETFsbroadly covering investment grade, high-yield and convertible bonds are an investor’s best option to deal with uncertainty.


ETF Exchange

  • A man looks at a board showing currency exchange rates in Bern January 15, 2015.

    What are the hot exchange trade fund investments for 2015? Here's what's got investment advisers talking at the annual Inside ETFs conference in Florida.

  • CNBC's Bob Pisani reports from the ETF Conference in Hollywood, Florida on growing competition in the ETF space where four major players have 90% of the market., and mutual fund managers and hedge funds are beginning to take notice.

  • PIMCO headquarters in Newport Beach, California

    These ETFs are supposed to hedge against rising rates, but many have a zero or negative return.