Bond Market Sell-Off: 3 of the Best ETFs to Buy Right Now
2026-10-05 15:43
•Ben Gran •The Motley Fool
••• ••• Axe Cap view
Rising Rates Call for a Shift in South African Equities
Higher interest rates and bond yields globally suggest a rethink on which JSE sectors to favor.
Globally, bond yields are pushing higher as central banks tighten policy against inflation. For South African investors, this often means two immediate things: financials stand to gain as banks expand net interest margins, and energy counters look more resilient given their commodity link and pricing power. Look at local banks like Standard Bank and FirstRand — they benefit when loan rates increase faster than deposit costs. On the energy side, Sasol continues to leverage commodity price strength despite operational challenges. The USD/ZAR tends to react too, often weakening alongside stronger dollar rates, which can add inflation pressure back home. Caution is warranted; if inflation cools quickly or global growth slows sharply, bank earnings may suffer, and Sasol’s performance could falter with energy prices. That said, the current macro landscape supports a tilt toward financials and energy, especially after a rough stretch for these sectors. this is just our opinion and not financial advice
Buy Standard Bank and FirstRand for exposure to rising rates. Hold Sasol for commodity-driven support. Avoid overexposure to consumer-facing stocks vulnerable to tighter credit. Watch USD/ZAR closely for further tightening signals.
- Standard Bank
- FirstRand
- Sasol
- USD/ZAR
- Unexpected global economic slowdown
- Rapid decline in commodity prices affecting energy stocks
7/10
As bond yields rise and interest rates climb, certain stock sectors are positioned to benefit. The article recommends three ETFs for rising rate environments: Vanguard Financials ETF (banks benefit from higher net interest margins), Vanguard Energy ETF (essential products maintain demand), and ProShares Equities for Rising Rates ETF (diversified large-cap stocks correlated with Treasury yields). Historical 2022 data shows all three outperformed the S&P 500 during the last rising-rate period.
Our take is based on reporting first published by The Motley Fool.