Why investors’ best move in reaction to Fed’s rate hike is doing nothing at all These fast-growing ETFs aim for yields as high as 17.5%. That’s because the equity risk premium — the amount by which stocks outperform T-bills — is on average no lower when interest rates are higher. This is illustrated by the accompanying chart, courtesy of calculations provided by Wes Crill, a vice president at Dimensional Fund Advisers.
As you can see, the S&P 500 on average has produced nearly identical returns historically regardless of whether short-term Treasury rates are above or below the median. Crill said in an email that the difference between the two columns in the chart is not statistically significant. Copyright ©2026 MarketWatch, Inc.
All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 These fast-growing ETFs aim for yields as high as 17.5%. I’m 56 and retired with one child in college and another who graduated, but I’m still supporting her. Amid the first Fed rate hike in 3 years, this is the No. 1 CD of September 2026 Mark Hulbert is a columnist for MarketWatch.
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