In an article for USNews, Tony Dong covers the opportunity for investors in high-yield fixed income and equity ETFs. Currently, investors can lock in risk-free yields above 5% due to rates being at their highest level in decades. 

However, these short-term rates are not likely to linger at these levels for a long period of time due to inflation peaking and now starting to roll over as well as increasing risk of a recession. Although there is divided opinion on which outcome will prevail, the reality is that either scenario will result in lower rates and yields. 

For investors who don’t believe that a recession will materialize, they should be salivating at the prospect of buying a high-yield fixed income or equity ETF to lock in these yields. These ETFs offer higher yields than Treasuries, but they also offer the potential for appreciation if economic growth surprises to the upside. 

For instance, the Invesco Fundamental High Yield Corporate Bond ETF is a diversified basket of high-yield, corporate bonds. These are riskier than investment-grade bonds but less so than equities. Currently, it pays a yield of 6.7% with an expense ratio of 0.5%. 

Finsum: Investors should consider taking advantage of the highest rates seen in decades through high-yield ETFs.