Top Stocks and Sectors Benefiting from US Rate Cuts

Table of Contents

What are some promising ETFs related to gold with high interest rate benefits?
Which ETFs are promising debt ETFs with high interest rate benefits?
Individual stocks that are particularly promising during the rate cut phase
summary

What are some promising ETFs related to gold with high interest rate benefits?

GLD (SPDR Gold Shares)

summary: GLD is an ETF that is directly linked to the price of gold and reflects changes in the price of physical gold. By holding physical gold and reflecting its value, they are popular as a hedge against inflation or when the value of a currency declines.
feature: GLD is directly linked to the price of gold because it is backed by physical gold holdings. It is highly liquid and suitable for capturing short-term gold price movements.
dividend yieldNone

GLD's real-time stock price chart

IAU (iShares Gold Trust)

summaryIAU is also an ETF linked to the gold price and is very similar to GLD, but IAU has lower management costs, making it an advantageous option for investors who plan to hold it for the long term.
feature: IAUs are suitable for cost-conscious investors and are useful if you expect the gold price to rise over the long term.
dividend yieldNone

IAU real-time stock price chart

GDX (VanEck Gold Mining Stocks ETF)

summary: GDX is an ETF that invests in gold mining companies around the world; as the price of gold rises, the profits of gold mining companies tend to increase, which in turn increases their stock prices.
feature: Since GDX is linked to the share price of gold mining companies, it is affected not only by fluctuations in the gold price, but also by the business conditions of the companies and market trends. It is suitable for investors seeking high risk/high return.
dividend yield:1.29%

GDX's real-time stock price chart

GDXJ (VanEck Small-Cap Gold Mining ETF)

summary: GDXJ is an ETF focused on smaller gold mining companies (junior miners); while these companies have high growth potential, they also carry greater risk.
feature: GDXJ invests in companies with growth potential among junior miners, and thus has the potential for higher returns when gold prices rise, but also higher risk.
dividend yield:0.57%

GDXJ's real-time stock price chart

SGOL (Aberdeen Physical Gold Shares ETF)

summarySGOL : SGOL is an ETF that invests in pure gold held in Swiss vaults and is linked to the gold price; similar to GLD and IAU, but more focused on the European market.
feature: SGOL is popular with investors seeking reliability because of the transparency of its physical gold holdings.
dividend yieldNone

SGOL's real-time stock price chart

Which ETFs are promising debt ETFs with high interest rate benefits?

TLT (iShares U.S. Government Bonds 20+ Year ETF)

summary: TLTis an ETF that invests in long-term U.S. government bonds with maturities of 20 years or more, which are sensitive to interest rates and tend to rise in price when interest rates fall.
feature: A promising option for investors who expect interest rates to fall over the long term, and can aim for higher returns with less risk. However, there is a risk of significant price declines when interest rates rise.
dividend yield:3.42%

TLT's real-time stock price chart

BND (Vanguard U.S. Total Bond Market ETF)

summary: BND is an ETF that invests in a broad range of bond markets, including U.S. Treasuries, corporate bonds, and mortgage-backed bonds, and is linked to the comprehensive bond market, providing risk diversification.
feature: Low cost, diversified exposure to a broad range of bond markets, and stable returns. Enjoys overall bond price appreciation even during periods of interest rate cuts.
dividend yield:3.37%

BND's real-time stock price chart

LQD (iShares iBoxx U.S. dollar-denominated investment-grade corporate bond ETF)

summary: LQD is an ETF that invests in U.S. investment-grade corporate bonds (highly rated corporate bonds), which offer relatively stable returns due to low credit risk.
feature: As interest rate cuts lower corporate borrowing costs and lower corporate credit risk, corporate bond prices are likely to rise. Dividend yields are also relatively high.
dividend yield:4.22%

LQD's real-time stock price chart

JNK (SPDR Bloomberg High Yield Bond ETF)

summary: JNK is an ETF that invests in high-yield (junk) bonds in the U.S. Suitable for investors seeking high risk/return, bond prices may rise when interest rates fall as corporate borrowing costs fall.
feature: High-yield bonds become more attractive in a falling interest rate environment, but risk management is important because the risk of default increases as the economy worsens.
dividend yield:6.50%

JNK's real-time stock price chart

EDV (Vanguard Ultra Long-Term U.S. Treasury Bond ETF)

summary: EDVThe ETF invests in long-term U.S. government bonds with maturities of 20 to 30 years (called strips, which are government bonds with the coupon portion separated), and is very sensitive to interest rate fluctuations because it invests in long-term government bonds.
feature: During an interest rate cut phase, EDV prices may rise significantly as long-term interest rates fall. This is because they have such a high duration that if interest rates fall 1%, prices will rise several times. On the other hand, risk management is important because the risk of a rise in interest rates is also very high and prices could fall substantially.
dividend yield:3.81%

EDV's real-time stock price chart

TMF (Direxion Daily 20+ Year US Treasury Bull 3x ETF)

summary: TMFis an ETF that is leveraged three times against 20+ year U.S. Treasuries, meaning that when the price of U.S. Treasuries rises, TMF is expected to benefit three times from that move.
feature: TMFs use leverage, which allows them to target very high returns when interest rates are falling, but at the same time triples the risk, making them a volatile investment product with high price volatility. It is suitable for investors who engage in short-term trading and aggressive risk-taking.
dividend yield:2.97%

TMF's real-time stock price chart

Both EDVs and TMFs can be very promising investments in times of interest rate cuts, but it is important to understand that they carry a high level of risk for interest rate fluctuations.

Individual stocks that are particularly promising during the rate cut phase

Here are a few stocks that I personally look for that are particularly promising or sensitive to interest rate movements during a rate cut phase.

These stocks are likely to benefit from a low interest rate environment due to their respective business models and market positions.

MKTX (Market Access Holdings)

Market Access Holdings is a provider of electronic trading platforms and deals primarily in corporate bonds and emerging market debt securities. When interest rates are lowered, trading in the bond market is likely to become more active, which could increase the company's trading volume. This is expected to increase the company's fee income, making it a particularly noteworthy stock to watch during a rate cut phase.

Real-time stock price chart of Market Access Holdings [MKTX

GOLD (Barrick Gold)

Barrick Gold is one of the world's leading gold mining companies and is directly affected by gold price trends. Gold is generally in demand in a low interest rate environment as a hedge against currency devaluation and inflation concerns, which could increase Barrick Gold's earnings. A rate cut would also be a promising prospect for this issue, as the gold price is expected to rise.

Barrick Gold [GOLD] real-time stock price chart

AGI (Alamos Gold)

Alamos Gold is a medium-sized gold mining company with a cost-effective production system. If the gold price rises as a result of interest rate cuts, the company's profit margins could expand. In particular, gold mining companies in the growth stage are sensitive to a rise in the gold price, making AGI one of the most promising stocks during the rate cut phase.

Real-time stock price chart of Alamos Gold [AGI

SPGI (S&P Global)

S&P Global is a provider of financial information and credit ratings. In a lower interest rate environment, corporate fundraising activity is expected to increase, leading to higher demand for S&P Global's rating services. As financial markets become more active, demand for data services and market analysis will also increase, and this stock could be a strong performer in a rate cut environment.

Real-time stock price chart of S&P Global [SPGI

ICE (Intercontinental Exchange)

Intercontinental Exchange is a provider of trading platforms for financial and commodity markets. A reduction in interest rates is expected to lead to increased trading activity in the fixed income and derivatives markets, which could increase ICE's trading volume and revenues. The low interest rate environment will also increase demand for the company's data services, making ICE a promising investment.

Real-time stock price chart for Intercontinental Exchange [ICE

summary

We have been discussing sectors and individual stocks that are good buying opportunities during the U.S. interest rate cut phase.
The timing of the shift from higher to lower interest rates makes portfolio construction and stock selection very difficult, but it is also a great opportunity.

A variety of sectors and stocks could benefit from a shift in interest rates from continuing gains, which have been driven by historic inflationary measures, to rate cuts.

We intend to respond well to these changes and select and manage the most appropriate stocks and ETFs while keeping an eye on the economic environment and financial market trends.