It also doesn’t help the bond investment case when one considers the health of municipal finances, and we have seen a rather large exodus from municipal bond-related ETFs as a result. For taxable bonds, the possibility of interest rate hikes, along with rising inflation, which are signs of an improving economy, have also turned investors away from long-term bonds. [Muni ETFs Suffer Record Outflows.]
If you’re still in fixed-income ETFs that are losing value, it might be time to evaluate whether it’s time to sell. We use a trend following strategy, which has us in and out of the markets at fixed signals.
For more information on the bonds market, visit our bond ETFs category.
Max Chen contributed to this article.