BNDD ETF

Bonds look increasingly attractive in the second half, given current yields and the indication of a Fed pause to interest rate hikes. Advisors and investors looking to broaden their bond exposures should consider the Quadratic Deflation ETF (BNDD), up 7% YTD on a total returns basis.

While there are strong yield opportunities back in bonds, some bond ETFs stand out this year for their performance. In particular, the Quadratic Deflation ETF (BNDD) is noteworthy, outperforming the broad U.S. fixed income market year-to-date.

Short-term Treasury yields rose at the end of June, benefiting several bond ETF strategies. The Quadratic Deflation ETF (BNDD) ended the month and first half on a strong note and is well-positioned for slowing growth.

June brought a reprieve from interest rate hikes but the potential for two more rate increases this year. The Quadratic Deflation ETF (BNDD) is well-positioned for slowing growth and is a top-performing bond ETF year-to-date.

The Quadratic Deflation ETF is a fixed-income ETF that seeks to benefit from lower growth, deflation, and lower or negative long-term interest rates. The BNDD ETF's name may be misleading, as it outperformed in inflationary 2022 due to its yield curve flattening options. Investors should consider the likelihood of a recession and the potential for interest rate cuts, which may steepen the yield curve and be detrimental to the BNDD ETF.

The debt ceiling negotiations remain the primary focus for markets in the final days of May. Investors piled into longer-duration bonds on worries of default risk, and the Quadratic Deflation ETF (BNDD) benefited.