Popularity and Performance Challenges of Long-Term Bond ETFs

Long-term bond ETFs in the United States are gaining popularity among individual investors, yet their performance remains lackluster. This is largely due to rising long-term interest rates spurred by the Trump administration's onset and the thriving U.S. economy. Experts suggest that while the Federal Reserve's pace of interest rate cuts may be gradual, a rate reduction is possible in the medium to long term. As a result, a strategy of phased buying into long-term bond ETFs is proposed to mitigate volatility.
Eunjung Park, a manager at Hyundai Securities, advises investing in long-term government bonds and domestically listed ETFs amid Trump's reemergence and political uncertainties. Additionally, she views investments in listed REITs and gold positively and emphasizes the growth potential of the Indian market. Park highlights the critical role of artificial intelligence and sees growth opportunities in sectors such as robotics, autonomous driving, aerospace, and defense.
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