Why use an ETF to buy bonds?

(OPTIMIZED VIDEO SPECIFIC DESCRIPTION)

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

Connect with CNBC News Online

#CNBC

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

Connect with CNBC News Online

#CNBC
#CNBCTV 

[darnellcapriccioso]

A lot of folks have been going on about a January rally and said mutual funds [ETF] stocks that would be experiencing significant growth these festive season, any idea which stocks/mutual funds this may be?

[jamesmaduabuchi]

There might be an economical turmoil but there is no doubt that this is still the best time to invest.

[zoeytank]

Developing sound habits, such as regularly placing money aside for safe investments, is necessary for achieving financial security. The majority of people avoid discussing financial management since it will later come back to haunt them. Our focus should be on putting our time and effort into endeavors and investments that will pay off in the long run. We have $400k set aside to begin tracking the bonds and stocks of cash-flowing companies that are inflation-indexed. It wouldn't hurt to be informed of tactics for making quick money as well, even if my spouse and I are progressively expanding our long-term holdings in a range of companies and ETFs.

[SiLoMixMaster]

'It's too complicated, give me your money instead and I'll do it for you' said the charming Wall Street scammer 🤣

[HafezBd]

Even if bond yields are increasing while stock prices are decreasing, the markets are still skeptical whether the Federal Reserve will stick to its goal to raise interest rates until inflation is under control. While I'm still debating whether to sell my $401k worth of equities, what is the best way to profit from the present down market?

[MrMountain]

He didn't sell it very well. Treasury Direct is pretty simple after watching a 5 min youtube video.

[volnaro]

A high quality, well managed bond ETF is a great hedge against market volatility. Especially with interest rates where they are now. It’s all about protecting and preserving your capital in this market rn

[RhondaArmstrong-yd]

Well, I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered and I don't know where to go here out of devastation.

[kevin-mitl]

Would you have access to your money quicker if you own sgov over t bills. So you can buy a stock in your brokerage account?

[JS-view]

This guy is cheating. Buying through treasury direct is easy, no commission to these ppl. ETF unnecessary commission and other cuts. Do it on your own in TREASURY DIRECT.

[selenajack]

Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $117k stocck portfolio, what’s the best way to take advantage of this bear market?

[invictuslegend]

Liars, buying treasuries is very very easy!

[dw]

Don't native bonds have the lowest volatility compared to ETFs? For example, if I buy a short-term bond, I always get 100% investment + interests back at the end of the maturity period. Unfortunately, I still don't understand why I should take volatility risks with most bond ETFs?

[angeladeem]

Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.

[brianminster]

It is not complicated folks. I use my Fidelity and Vanguard accounts to ladder shorter term (4 and 8 week) treasury bills so that I have some maturing every week. And you can roll any of these at maturity. What is so complicated and you save the 15 bps? Plus by using shorter term bills you are always guaranteed that you will be getting the higher rates at maturity.

[fernandodoria]

There are 2 Canadian ETFs for US Bonds that I like. The Harvest ETF, HPYT, and the Hamilton ETF, HBND. Both in Canadian Dollars on the Toronto Stock Exchange.

[braxtonhorton]

I totally agree it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit, I been reading of investors making over $400k profit in this current crashing market, and I need ideas on how to achieve similar profits.

[Heretolearn]

What has always irked me about treasury ETFs is the high likelihood of loss of principal. If I buy a 90 day t-bill, I get 100% of my principal back in three months. If I buy the etf, depending on the economic cycle, I may get more or less than I initially invested. If you bought the etf at rock-bottom yields and the fed begins a hiking cycle, it could be a decade or more before you’re back to break even. Only long-term investors or short term speculators should invest in these imo.

[davidv.]

These guys are making a problem that simply doesn’t exist. I buy Bills every three months. Just a couple of clicks and done.

[MarmotsreFun]

Are there differences in tax considerations Between direct ownership of the bonds versus ETF?