These income-generating plays can yield up to 6% as the Fed holds rate steady
By Michelle Fox
Published on March 18, 2026.
The Federal Reserve's decision to keep the federal funds rate steady has led investors to find attractive yields on short-duration assets. The market is concerned about inflation due to rising oil prices and higher-than-expected wholesale costs. However, Winnie Sun, co-founder of Sun Group Wealth Partners and a member of the CNBC Financial Advisor Council, said short-term Treasurys and high-quality bonds remain at these levels of yield consistent over many years. Ultra-short bond exchange-traded funds have seen $85 billion in inflows over the past 12 months, according to Bryan Armour, director of ETF and passive strategies research for North America at Morningstar. He recommended the JPMorgan Ultra-Short Income ETF (JPST), which outperformed the Vanguard Short-Term Bond ETF over the longer term, with JPST seeing a 5-year annual trailing return of 3.5% versus BSV's 1.7%. Bank loans have also become popular due to their high yields and increased ETF issuance. Despite these risks, bank loans are riskier than corporate bonds or Treasuranys as they are lower quality and carry lesser credit ratings.
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