What is an ETF? - Cabot Wealth Network
  • Home
  • Daily
    • Dividend Stocks
    • Emerging Markets
    • ETFs
    • Growth Stocks
    • How To Invest
    • Income Investing
    • Options Trading
    • Personal Finance
    • Precious Metals Investing
    • Real Estate Investing
    • Small-Cap Stocks
    • Stock Market
    • Value Investing
  • Free Resources
    • Daily
    • Free Reports
    • Previews
    • Videos
    • Webinars
  • Advisories
    • Growth
      • Cabot Growth Investor
      • Cabot Top Ten Trader
      • Cabot Small-Cap Confidential
      • Cabot Early Opportunities
    • Income
      • Cabot Dividend Investor
      • Cabot Income Advisor
    • Options
      • Cabot Options Trader
      • Cabot Options Trader Pro
      • Cabot Profit Booster
    • Diversified
      • Cabot Stock of the Week
      • Cabot Explorer
    • Value
      • Cabot Micro-Cap Insider
      • Cabot Turnaround Letter
      • Cabot Undervalued Stocks Advisor
    • Sector
      • Cabot SX Cannabis Advisor
      • Cabot SX Crypto Advisor
      • Cabot SX Greentech Advisor
      • Cabot SX Gold & Metals Advisor
    • Essentials
      • Cabot ETF Strategist
  • Memberships
    • Cabot Prime Pro
    • Cabot Prime Plus
    • Cabot Retirement Club
    • Cabot Sector Xpress Club
    • Cabot Money Club
  • Events
    • Summit
    • Webinars
  • About
  • Manage Account
  • Contact Us
  • Privacy Policy, Terms of Use, and Premium Service User Agreement
  • Analyst Index
  • Glossary
  • Keyword Index
  • Browse Topics
  • Daily Archive

Cabot Wealth Network Logo

  • Home
  • Daily
    • Dividend Stocks
    • Emerging Markets
    • ETFs
    • Growth Stocks
    • How To Invest
    • Income Investing
    • Options Trading
    • Personal Finance
    • Precious Metals Investing
    • Real Estate Investing
    • Small-Cap Stocks
    • Stock Market
    • Value Investing
  • Free Resources
    • Daily
    • Free Reports
    • Previews
    • Videos
    • Webinars
  • Advisories
    • Growth
      • Cabot Growth Investor
      • Cabot Top Ten Trader
      • Cabot Small-Cap Confidential
      • Cabot Early Opportunities
    • Income
      • Cabot Dividend Investor
      • Cabot Income Advisor
    • Options
      • Cabot Options Trader
      • Cabot Options Trader Pro
      • Cabot Profit Booster
    • Diversified
      • Cabot Stock of the Week
      • Cabot Explorer
    • Value
      • Cabot Micro-Cap Insider
      • Cabot Turnaround Letter
      • Cabot Undervalued Stocks Advisor
    • Sector
      • Cabot SX Cannabis Advisor
      • Cabot SX Crypto Advisor
      • Cabot SX Greentech Advisor
      • Cabot SX Gold & Metals Advisor
    • Essentials
      • Cabot ETF Strategist
  • Memberships
    • Cabot Prime Pro
    • Cabot Prime Plus
    • Cabot Retirement Club
    • Cabot Sector Xpress Club
    • Cabot Money Club
  • Events
    • Summit
    • Webinars
  • About
  • Sign In
  • Register
  • | Register

Can You Still Own Bond ETFs When Interest Rates Are Rising?

etf Archives

What is an ETF?

An ETF, or Exchange-Traded Fund, holds dozens and even hundreds of stocks, commodities, or bonds, giving you the safety of diversification and exposure to many different types of investments.

Like most investments, an ETF comes with advantages and disadvantages for any given investor. ETFs allow small investors to buy a piece of their favorite asset groups more cheaply and with less hassle than buying a traditional mutual fund or multiple stocks. ETFs can also be used to track the progress of the leading indexes, which is why even professional traders and hedge fund managers have come to prefer them over individual stocks and commodities.

Like stocks, an ETF can also be aggressive, defensive, growth-oriented, or based around different sectors like clean energy or dividend investments. ETFs also offer investors another key advantage: they make it easier to see at a glance which industries are outperforming and which ones are underperforming the broad market. 

When you’re trying to decide which ETFs are likely to return a worthwhile profit, one of the best things you can do is perform a quick relative performance check. This is done by comparing the fund’s recent price performance against the performance of a benchmark index, such as the S&P 500. 

But there are downsides to ETF investing. Anyone who was investing in stocks in 2008 can probably remember the deepening feeling in the pit of their stomach as the market continued the free-fall that began in earnest in January 2008 and would continue through March 2009. During that time, the S&P 500 Index fell nearly 58% in the most popular broad market index in the U.S. If you were holding index ETFs, you really suffered.

There are some instances when investing in ETFs makes sense—whether it be gaining maximum exposure to a red-hot sector, gaining access to an entire country’s stock market, or simply taking advantage of a bull market. In general, however, we don’t recommend buying and holding ETFs the way you would stocks with long-term growth potential.

For stocks that you can buy and hold onto, download our FREE report, 10 Forever Stocks to Buy Now—and How to Find the Best Growth Stocks, today.

 

Read More
Can You Still Own Bond ETFs When Interest Rates Are Rising?

Can You Still Own Bond ETFs When Interest Rates Are Rising?

May 19, 2022|by Cabot Wealth Network

What’s the safest way to own bonds when interest rates rise? That’s a question many investors, especially in bond ETFs, are asking today. Here's my answer.
Read More

How to Use Inverse ETFs to Capture Gains in this Volatile Market

How to Use Inverse ETFs to Capture Gains in this Volatile Market

May 19, 2022|by Kate Stalter

Buying inverse ETFs is a good way to combat the ongoing market sell-off. But there's another tactical approach to using ETFs as a hedge.
Read More

2 Wheat Stocks (and 1 ETF) Getting a Big Boost from Russia/Ukraine

2 Wheat Stocks (and 1 ETF) Getting a Big Boost from Russia/Ukraine

May 18, 2022|by Chris Preston

The war in Ukraine has pushed wheat prices to record highs. Buy these two wheat stocks (and one ETF) while the rest of the market flounders.
Read More

3 Shipping Stocks and ETFs to Ride Out Inflation

3 Shipping Stocks and ETFs to Ride Out Inflation

May 18, 2022|by Clif Droke

While metals have retreated in recent weeks, shares of shipping companies are on the rise. Here are my favorite shipping stocks and ETFs.
Read More

Why SPACs are a Safer Bet than Growth Stocks In this Bear Market

Why SPACs are a Safer Bet than Growth Stocks In this Bear Market

May 17, 2022|by Brendan Coffey

SPACs and growth stocks rose in tandem in 2020 and 2021. Now both are struggling in the new bear market. One has more immediate upside.
Read More

ETF Inflows: Where Money Is Moving Now

ETF Inflows: Where Money Is Moving Now

May 13, 2022|by Kate Stalter

ETF inflows (and outflows) are a useful way to measure how money is flowing in the market and to identify sector rotation and opportunity. These five ETFs currently have the largest inflows.
Read More

4 Highly Rated Socially Responsible Investments

4 Highly Rated Socially Responsible Investments

May 13, 2022|by Nancy Zambell

Want some socially responsible investments in your portfolio? There are some odd, uber-specific ETFs out there these days.
Read More

3 Candidates for the Best Dividend ETF

3 Candidates for the Best Dividend ETF

May 12, 2022|by Brad Simmerman

Looking for income in this environment can be challenging, but a dividend ETF relies on the fund managers to do that work for you. Here are three stable dividend ETFs.
Read More

The Best Conservative Dividend Stocks for 2022

The Best Conservative Dividend Stocks for 2022

May 9, 2022|by Tom Hutchinson

While a surprisingly good year for the market, 2020 has not been kind to dividend payers. Here are 4 conservative dividend stocks for 2021.
Read More

Three Simple Options Strategies to Hedge Your Portfolio

Three Simple Options Strategies to Hedge Your Portfolio

May 9, 2022|by Jacob Mintz

If you're worried about market volatility you have more options than simply going to cash. Here are three ways to potentially hedge a portfolio with options.
Read More

Gold as an Investment: The Good, the Bad and the Ugly

Gold as an Investment: The Good, the Bad and the Ugly

May 9, 2022|by Cabot Wealth Network

Gold's value as a safe-haven instrument is undeniable, but gold as an investment loses much of its luster over the long haul.
Read More

3 Safe Haven ETFs to Buy as Big Money Turns Bearish

3 Safe Haven ETFs to Buy as Big Money Turns Bearish

May 6, 2022|by Clif Droke

Big money investors are as bearish as they've at they've been in the last two decades. So it's a good time to buy these safe haven ETFs.
Read More

The 3 Best Utility Stocks and ETFs To Buy Today

The 3 Best Utility Stocks and ETFs To Buy Today

May 6, 2022|by Tom Hutchinson

People will always need electricity, gas and water. And that's what makes utility stocks so reliable. Here are three that I like right now.
Read More

What is an ETF or Exchange-Traded Fund?

What is an ETF or Exchange-Traded Fund?

May 6, 2022|by Cabot Wealth Network

What is an ETF? An exchange-traded fund, is an investment fund comprised of multiple different investments such as stocks, bonds, and commodities.
Read More

When to Consider Spin-Off Stocks

When to Consider Spin-Off Stocks

May 4, 2022|by Nancy Zambell

Spin-offs are common today, and spin-off stocks are often purer plays on an industry than their parent company. Should you invest in them?
Read More

The Best Airline Stocks and ETFs to Play the Travel Recovery

The Best Airline Stocks and ETFs to Play the Travel Recovery

May 3, 2022|by Chris Preston

Americans are boarding planes again after a year hiatus, and airline stocks are rebounding. Here's one stock and one ETF to play the trend.
Read More

5 Underperforming ETFs to Avoid

5 Underperforming ETFs to Avoid

May 2, 2022|by Clif Droke

You never want to invest in losing sectors. And by avoiding these five underperforming ETFs, you can stay focused on stocks and sectors with momentum.
Read More

What is ESG Investing?

What is ESG Investing?

May 2, 2022|by Cabot Wealth Network

ESG investing is a way to invest without sacrificing certain morals or ethics. But can you make money investing that way?
Read More

Using Buy-Writes to Generate Income

Using Buy-Writes to Generate Income

April 29, 2022|by Jacob Mintz

Using Buy-Writes (also known as covered calls) to generate income is a safe way to create yield in this market—it's as close to free money as you can find.
Read More

Ranking the 5 Best-Performing Gold Mining Stocks

Ranking the 5 Best-Performing Gold Mining Stocks

April 27, 2022|by Clif Droke

As coronavirus continues to wreak havoc, investors are flocking to gold, a traditional safe haven. And these are the 5 best-performing gold mining stocks.
Read More

Older Articles

What Can We Help You With?

What Can We Help You With?

As Seen On

As seen on these popular channels

Our Newsletter Updates

Browse Topics

  • Dividend Stocks
  • Emerging Markets
  • ETFs
  • Growth Stocks
  • How To Invest
  • Income Investing
  • Options Trading
  • Personal Finance
  • Precious Metals Investing
  • Real Estate Investing
  • Small-Cap Stocks
  • Stock Market
  • Value Investing

Recent Previews

  • How to Avoid the Biggest Investing Schemes and Rip-Offs!
  • How to Manage Your Investments and Your Money with the Best Tools Available!
  • How to Buy or Start Your Own Small Business

Latest Videos

Video: Another Generally Down Week in the Market | Cabot Weekly Review

Upcoming Events

3 Precious Metals Outperforming Gold – and the Market

FREE WEBINAR: Thursday, June 30, 2022 at 2:00 PM ET with Clif Droke, Chief Analyst, Cabot SX Gold & Metals Advisor

Space is limited so sign up now for FREE.

Free Reports

  • The 7 Best Places in the World to Retire on a Budget
  • How to Invest in Precious Metals: More Than Just Buying the Best Gold Stock
  • 5 Best Stocks to Buy in May
  • Cabot’s Best Dividend Stocks
  • How Options Work—and How to Hedge Portfolios with Options
  • How to Find Undervalued Stocks
  • How to Invest in Stocks and Other Investing Basics
  • Mortgage Interest Rates: How to Find the Best Interest Rates and Other Tips for Securing Low Mortgage Payments
  • 5 Tips for Making Insurance Work for You
  • Technical Analysis of Stocks
  • How to Invest in Marijuana Stocks

Reviews

  • "Your updates are reassuring. Makes me aware you've got a close eye on the portfolio."

    -R. Davis, Sierra Vista, Arizona

Enter Your Log In Credentials

This setting should only be used on your home or work computer.

  • Lost your password? Create New Password
  • No account? Sign up

Need Assistance?

call Cabot Wealth Network Customer Service at

1 (800) 326-8826

  • Manage Account
  • About
  • Contact Us
  • Privacy Policy, Terms of Use, and Premium Service User Agreement
  • Analyst Index
  • Glossary
  • Keyword Index
  • Browse Topics
  • Daily Archive

Copyright © 2022 Cabot Wealth Network
Cabot Heritage Corporation
PO Box 2049
201 Washington Street, Suite 215, Salem, MA 01970 USA
Phone: 1 (800) 326-8826
Email: support@cabotwealth.com

Powered by Mequoda Systems

Subscribe to Our Newsletter

Discover the hottest stocks, investing tips and analysis from Cabot analysts in our free Cabot Wealth Daily newsletter delivered right to your inbox.

Cabot Wealth 50 Plus