Surge in US Dividend ETFs Following Fed Rate Cut

Reported 3 months ago

Following the Federal Reserve's recent decision to cut interest rates, US dividend exchange-traded funds (ETFs) have experienced significant investor inflows, totaling $3.05 billion in September. This marks a significant increase compared to average monthly inflows earlier in the year. The demand is largely driven by investors seeking income-generating investments as the Fed alters its monetary policy, although rising Treasury yields may temper the influx. Experts note that while dividend-yielding stocks benefit from this shift, they must also balance high payouts with the need for company growth.

Source: YAHOO

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