SPTS can be paired with funds such as the SPDR Portfolio Long Term Treasury ETF (NYSEArca: SPTL) to deal with the Fed’s efforts at avoiding an inverted yield curve.
“Given that the Fed is expected to hike rates at least once more in 2018, that issues constricting long-term yields are not likely to be solved quickly and that aging investors are allocating more capital to bonds, the trajectory of the yield curve is likely to only be flatter, not higher,” said SSgA.
Not only is SPTS is a viable avenue for lowering portfolio duration, the fund is inexpensive. Its annual fee of 0.06%, or $6 on a $10,000 investment, is favorable among bond ETFs.
For more on the bond market, visit our Fixed Income Channel.