Investors are missing this key point about the bond market, top strategist says

Tim Seymour, founder and chief investment officer at Seymour Asset Management, said the market's defensive stance could even be an opportunity for ETF issuers looking to capitalize on investors' concerns.

"It's been the pain trade, and, obviously, we've had a question about the global growth environment, which has made it very comfortable for people to fly into fixed-income instruments," he said in the same "ETF Edge" interview. "It makes it so ... that the ETFs around that community do need to have greater access points for people to be investing in munis [municipal bonds] and triple-A credits that actually could be more defensive.

But high-yield investments still carry a good deal of risk, said Seymour, who also appears regularly as a trader on CNBC's"I'll tell you what: The JNK and the HYG, if we start to see any questions about the economy, liquidity dries up very quickly in high yield and I think they will move to the downside," he warned.

HYG and JNK were both down slightly following Wednesday's Fed decision. VYM was up less than 1%. TLT was up over 1%.

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