Why Investing in TLT, Short-Term Bond ETFs Makes Sense

Annex’s Jacobsen talks about the current investing environment.

Reviewed by: etf.com Staff
Edited by: Kent Thune

Don’t give up on long-term bond ETFs like the iShares 20+ Year Treasury Bond ETF (TLT) just because they’ve been tumbling recently. In this episode of Talk ETFs, Brian Jacobsen, chief economist with Annex Wealth Management, sits down with etf.com senior analyst Sumit Roy to discuss why investors should consider taking a barbell approach when it comes to investing in fixed income, as well as where he sees the best opportunities in the stock market today.  
Jacobsen believes that high short-term interest rates aren’t going to stay with us forever—a view shared by many investors as evidenced by the strong inflows for TLT. He advises that investors park some money in short-term bonds to “make hay while the sun is shining,” but to also add to long-term bonds and related ETFs to lock in high rates for a longer period of time.  
“We have begun to add some exposure to [long-term bonds], expecting that those rates aren’t going to stay at these elevated levels persistently,” Jacobsen said.  
As chief economist, Brian provides insight and leadership to Annex’s clients and its Investment Committee, which guides client portfolio construction and investment philosophy. An accomplished writer and speaker, Brian’s perspective and expertise have been featured nationally on networks like CNBC and Bloomberg. He has also appeared on Annex’s “Money Talk” weekly radio program.

Talk ETFs is a weekly video series hosted by etf.com’s Senior Analyst Sumit Roy. Episodes highlight up-to-the-minute investing trends and strategies with commentary from leading experts in the ETF industry.