Why Investors Should Only Buy Individual Fixed Income Securities
Portfolio Pulse from John Nowicki
LCM Capital Management advises investors to buy individual fixed income securities such as municipal bonds, CD’s, Treasuries etc., instead of mutual funds or ETFs. The firm criticizes the fees, lack of maturity, and risks associated with these products. As an example, the firm bought a share of BlackRock’s iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) and found that the returns were lower than if they had bought a 1-year Treasury bond.
October 02, 2023 | 8:08 pm
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LCM Capital Management's analysis suggests that BlackRock’s iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) may provide lower returns than individual fixed income securities.
The firm's analysis of their investment in SHY showed a lower return than if they had invested in a 1-year Treasury bond. This suggests that the ETF may not provide as high returns as individual fixed income securities.
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