Use this ETF as a Contrarian Play in 2026

Core Insights - The article discusses the potential for bonds, particularly the Neuberger Berman Total Return Bond ETF (NBTR), to be considered as contrarian investment ideas for 2026, amidst a prevailing enthusiasm for growth stocks [2][3]. Investment Opportunities - Bonds are highlighted as a significant asset class, and the interest in ETFs like NBTR stems from the need for portfolio diversification rather than criticism of bonds [2]. - The NBTR ETF is positioned as a potentially better-performing option compared to passive funds, especially in a market concerned about low fixed income returns [4]. Performance Metrics - The Morningstar US Core Bond Index has achieved an average annual return exceeding 4% since late 2022, with a current yield of 4.25%, which is above the inflation rate [5]. - NBTR has a weighted average duration of 5.87 years, categorizing it as an intermediate-term fund, which historically provides better diversification in equity-heavy portfolios [6]. Market Conditions - The current economic environment, characterized by a weakening dollar and anticipated Federal Reserve monetary easing, is favorable for intermediate-term bonds and ETFs like NBTR [6]. - Experts suggest that the 'sweet spot' for fixed-income investing lies in intermediate-term bonds, while expressing caution towards longer maturities due to their vulnerability to interest rate shifts [7].