SGOV ETF rated Buy for short-term cash needs; TLT ETF rated Hold with potential upgrade after Fed meeting.
Benjamin C. Barry recommends buying the SGOV ETF for cash needed within 12 months due to its nearly 4% yield and low price volatility, making it suitable amid interest rate uncertainty. He rates the TLT ETF a Hold because, despite its attractive 5.7% yield, the extra income only partially offsets rising long-term bond yields. The outlook for TLT depends on upcoming CPI data and the Federal Reserve's October meeting, which could lead to a more dovish stance and an upgrade to Buy. Long bond yields have been rising, with the 10-year yield near its highest since 2002, influencing these recommendations.
Benjamin C. Barry recommends buying the SGOV ETF for cash needed within 12 months due to its nearly 4% yield and low price volatility, making it suitable amid interest rate uncertainty. He rates the TLT ETF a Hold because, despite its attractive 5.7% yield, the extra income only partially offsets rising long-term bond yields. The outlook for TLT depends on upcoming CPI data and the Federal Reserve's October meeting, which could lead to a more dovish stance and an upgrade to Buy. Long bond yields have been rising, with the 10-year yield near its highest since 2002, influencing these recommendations.
What's Your Reaction?
