iShares Core US Aggregate Bond ETFNYSE American: AGG

Junk bonds are beating the broader U.S. fixed-income market so far in 2024 — but pummeled Treasurys have attempted a comeback lately.

The month of May served as a reminder to get core bond exposure. That's because funds focused on the debt market saw increased inflows after April's outflows, resuming the positive trend.

U.S. equity markets posted a mixed performance this week, while benchmark interest rates dipped to two-month lows after a critical slate of inflation data showed an encouraging cooldown in price pressures. As expected, the Fed held rates steady at two-decade highs of 5.50%, but the committee's "dot plots" showed that the FOMC is now penciling in just one rate-cut in 2024. Posting a series of record highs throughout the week, the S&P 500 advanced another 1.6% to extend its year-to-date total returns to over 15%, but the gains were notably top-heavy.

REITweek, the annual REIT industry conference, was held last week in New York City. Humbled by two years of rate-driven headwinds, the venue halls were as quiet as any REITweek. Excitement was muted after numerous "false starts" on the long-awaited Fed pivot, a dearth of IPO and M&A activity, and a two-year period of significant underperformance versus the broader market. It can only get better: since the start of the Fed's rate hike cycle in March 2022, the REIT Index has underperformed the S&P 500 by a whopping 40 percentage-points.

The NEOS suite of actively managed income ETFs offers tax-efficient income across core holdings. These include equities, bonds, and cash alternatives.

After experiencing their third-largest weekly outflow ever, money markets have now seen three consecutive weeks of inflows. The only category to see outflows was mixed-assets funds. Spot bitcoin ETFs received inflows the following week after experiencing their first outflow since their launch.

After concluding another policy meeting, the Federal Reserve saw markets delaying their predictions for when the first rate cut will occur. Currently, there is a 60% chance of a cut happening in September, according to the federal funds futures market as of Wednesday.

The bond market's expectations have become more hawkish, presenting a potential opportunity to purchase bonds and bond ETFs. The market has shifted from anticipating a 150 basis point cut to now only expecting a 36 basis point cut within three months. The iShares Core U.S. Aggregate Bond ETF offers a cost-effective and straightforward option to invest in a diversified portfolio of investment-grade bonds.

U.S. Weekly FundFlows Insight Report: Fund Market Experiences First Weekly Inflow in Three Weeks, Adding $5.5 Billion.