3 Ultra-Safe Fixed Income ETFs That Can Double the Average CD Rate

Many savers turn to certificates of deposit (CDs) for income, but those can come with some drawbacks. Sure, your principal is FDIC-insured, and your interest rate is locked in. So there's a predictability and safety with CDs that you can't find in other segments of the fixed income market.The trade-off for that is usually a lower yield. The national average rate for a 12-month CD is somewhere between 1.5% and 1.6%. You can find higher yields than that in some places, but they may come with high minimums, penalties, or fees.The ETF marketplace solves a lot of those hang-ups. The variety of offerings in the fixed income space means you can easily find low-risk funds with yields of up to 4% or more that come with minimums or lock-in periods. The only thing that these ETFs don't come with is FDIC insurance.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool