Power Your Advice Episode 299 – Fixed Income Clarity in an Uncertain Fed Cycle with Kevin Flanagan
Kevin Flanagan, Head of Fixed Income Strategy at WisdomTree, joins us to discuss how advisors can navigate uncertainty as the Fed manages policy in a “flying blind” environment. He explains why Treasury Floating Rate Notes remain a cornerstone even in a rate-cut cycle, how defining the true neutral rate will shape future decisions, and why concerns around Fed leadership changes may be overblown.
Kevin also shares how WisdomTree’s yield-enhanced AGGY strategy and active-passive barbell approach can help advisors manage duration, balance risk, and capture yield opportunities without adding leverage. With a focus on discipline and flexibility, he outlines how advisors can position portfolios for the next phase of the Fed’s evolving policy path.
Resources: WisdomTree
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. For a prospectus or, if available, the summary prospectus containing this and other important information about the fund, call 866.909.9473 or visit WisdomTree.com/Investments. Read the prospectus or, if available, the summary prospectus carefully before investing.
WisdomTree Floating Rate Treasury Fund (USFR)
There are risks associated with investing, including possible loss of principal. Securities with floating rates can be less sensitive to interest rate changes than securities with fixed interest rates, but may decline in value. Fixed income securities will normally decline in value as interest rates rise. The value of an investment in the Fund may change quickly and without warning in response to issuer or counterparty defaults and changes in the credit ratings of the Fund’s portfolio investments. Due to the investment strategy of this Fund it may make higher capital gain distributions than other ETFs. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY)
There are risks associated with investing, including possible loss of principal. Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Investing in mortgage- and asset-backed securities involves interest rate, credit, valuation, extension and liquidity risks and the risk that payments on the underlying assets are delayed, prepaid, subordinated or defaulted on. Due to the investment strategy of the Fund, it may make higher capital gain distributions than other ETFs. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
Bloomberg U.S. Aggregate Bond Index (Agg): Represents the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, as well as mortgage and asset backed securities.
Kevin Flanagan is a Registered Representative of Foreside Fund Services, LLC.
WisdomTree Funds are distributed by Foreside Fund Services, LLC.