These income plays could do better than money market funds when the Fed cuts rates

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Markets,Investment Strategy,Invesco Bulletshares 2029 Corporate Bond ETF

Money market funds have grown above $6 trillion, but they could be less attractive as interest rates fall.

Cash has poured into money market funds since the Federal Reserve began its rate hiking cycle. But now that the central bank seems close to a rate cut, financial advisors are trying to push their clients away from these funds that could soon see their yields slashed. Short-term debt has been a popular investment over the past few years, and money market funds are a top example. There's currently more than $6 trillion in money market funds, with nearly $2.

mountain This bond ETF yields almost 5%. Active management For investors who don't want to manage a bond strategy on their own, actively managed bond funds could make sense. Ken Brodkowitz, chief investment officer at Gries Financial Partners, said his firm has been shifting into strategic income funds to get a bit more duration. These are actively managed multisector bond funds that have flexibility to hunt for extra yield as rates fall.

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