Bond ETFs

U.S. equities typically don’t do well in an election year as the political uncertainty helps fuel market volatility. Instead, exchange traded fund investors may be better off sticking to more conservative investment-grade fixed-income assets. ”If a candidate with radically different ideas came into office, it would be an environment where the market would have difficult […]

Guggenheim Investments launched its own actively managed bond exchange traded fund, providing investors with another means to bet on a money manager’s ability to effectively navigate the fixed-income market in a rising rate environment. The Guggenheim Total Return Bond ETF (NYSEArca: GTO) utilizes a multi-sector strategy and primarily holds investment-grade fixed-income securities across multiple sectors, […]

Matt Tucker, Managing Director and Head of iShares Fixed Income Strategy at BlackRock, joined Tom Lydon, ETF Trends Publisher, at the Inside ETFs conference in Hollywood, Florida to pinpoint some major strategies that financial advisors are thinking about today. Given the ongoing market volatility, price swings in oil and weak earnings season, more investors are […]

Japanese government bonds and related exchange traded products have been on a streak this year, with Japan becoming the first major economy with a sub-zero yield on benchmark 10-year debt. The DB Japanese Govt Bond Futures ETN (NYSEArca: JGBL), which tracks 10-year Japanese government bond futures, rose 3.8% year-to-date. Meanwhile, the DB 3x Japanese Govt […]

Despite benchmarks Treasury yields nearing record lows, investors may want to stick to government debt securities and bond-related exchange traded funds as more continue to pare bets on further Federal Reserve interest rate hikes. Treasury bond ETFs that track government debt securities with long-term maturities have been strengthening. For instance, the iShares 20+ Year Treasury […]

The lackluster earnings season and ongoing economic weakness have caused exchange traded fund investors to shift away from riskier equity markets into more conservative, safe-haven assets. According to EPFR data, investors redeemed over $10 billion from U.S. equity funds in the week ended February 4, the fifth constitutive week funds have recorded an outflow, reports […]

As Japan steers toward a negative rate environment, Treasury bond exchange traded funds bounced, with benchmark yields dipping to nine-month lows, on increased demand for U.S. dollar-denominated assets. The iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF), which has a 7.57 year effective duration and a 1.86% 30-day SEC yield, was up 0.4% Friday. The […]

Despite the ongoing volatility, the Federal Reserve has not shifted away from an interest rate tightening cycle. Consequently, investors should understand the potential effects or rising rates on the markets and incorporate alternative exchange traded fund strategies to adapt to the changes. On the recent webcast, Positioning Portfolios in a Rising Rate Environment, Joe Benevento, […]

As the Federal Reserve plans a “gradual” interest rate tightening cycle, exchange traded fund investors will have to adjust their portfolios accordingly. On the upcoming webcast, Positioning Portfolios in a Rising Rate Environment, Joe Benevento, CIO for Americans and Co-Head of Global Fixed Income at Deutsche Asset Management, Sebastien Galy, FX Strategist at Deutsche Bank, […]

ETF Trends publisher Tom Lydon recently appeared on CNBC to talk talk alternative investment ideas to play a more volatile market environment and mentioned the EGShares India Consumer ETF (NYSEArca: INCO) as an attractive play for a growing emerging economy. Click on the video below to hear the full interview. The opinions and forecasts expressed […]

As global markets plunged deeper into a correction, investors exited stock exchange traded funds for the third straight week. According to EPFR data, U.S. stock funds experienced $4.2 billion in withdrawals for the week ended January 20, which added to the worst three-week period of outflows since April, Reports Eric Platt for the Financial Times. […]

Investors who are using emerging market bond exchange traded funds to supplement their income needs should understand the potential risks of being exposed to this foreign debt asset. On Wednesday, emerging market borrowing costs hit their highest level in five years as investors warned of a crippling credit crunch, the Financial Times reports. The weakness […]

Treasuries and bond-related exchange traded funds advanced Wednesday as benchmark yields tumbled to their lowest since October. On Wednesday, the iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF) rose 0.5%, Schwab Intermediate-Term U.S. Treasury ETF (NYSEArca: SCHR) was 0.3% higher, Vanguard Intermediate-Term Government Bond ETF (NYSEArca: VGIT) was up 0.3% and SPDR Barclays Intermediate Term […]

The recent selling has put the markets on edge. Nevertheless, investors can still find ways to navigate the markets. ETF Trends publisher Tom Lydon appeared on CNBC to discuss opportunities in the financial sector and hedging against volatility with long-term Treasuries. Click on the video below to see the full interview. The opinions and forecasts […]

Safe U.S. government debt and Treasury bond-related exchange funds shine in a volatile market. Treasury bond ETFs that track government debt securities with long-term maturities have been strengthening as U.S. equities retreated at the start of the new year. The iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT), which has a 17.48 year duration and […]

Speculative-grade debt and junk bond-related exchange traded funds have been under pressure for most of 2015, potentially opening a bargain opportunity for fixed-income investors. Jonathan Beinner, chief investment officer at Goldman Sachs Asset Management, believes that one of the year’s big surprises may be found in junk bonds, which could “actually have decent returns,” reports […]

As people digest the changing Federal Reserve outlook, fixed-income investors may want to hold onto their municipal debt and bond-related exchange traded fund positions. “One area of the U.S. bond market that does merit attention is the municipal market,” according to Russ Koesterich, Global Chief Investment Strategist and Head of the Model Portfolio & Solutions […]

The exchange traded fund industry continues to expand its product line, providing investors with a growing number of strategies to customize and maximize their portfolios. According to XTF data, there are now 1,843 exchange traded products, which include exchange traded funds and exchange traded notes, with $2.15 trillion in assets under management. Fund sponsors launched […]

With the Federal Reserve intent on gradually normalizing interest rates and default risks rising, fixed-income investors may utilize inverse or short bond exchange traded funds to hedge their corporate debt exposure. Banks and investors are turning to alternative tools to hedge losses as credit markets grow more vulnerable to shocks from commodity prices, notably depressed […]

Junk bond-related exchange traded funds that that cover some of lowest-rated companies may be in for more pain ahead as distressed debt levels in the U.S. rise. According to ratings agency Standard & Poor’s, the number of companies with the lowest credit ratings and negative outlooks increased to 195 in December, the highest level since […]

Municipal debt and bond-related exchange traded funds have been outperforming Treasuries and could maintain their momentum ahead as more investors turn to the relatively stable and strong asset. “The audience for the asset class continues to expand with increasing interest from non-traditional domestic and foreign buyers,” according to the BlackRock Municipals Group. “As demand is […]

Vanguard, the second-largest U.S. issuer of exchange traded funds, continues cementing its status as a low-cost leader in the ETF industry with Tuesday’s announcement of lower expenses on 21 ETFs. The group of Vanguard ETFs with new, lower fees includes the issuer’s lineup of 10 sector funds. That means Vanguard’s sector ETFs are now the […]

Until recently, Russian stocks and exchange traded funds such as the Market Vectors Russia ETF (NYSEArca: RSX) had been this year’s star BRIC performers. Next year could bring opportunity for another Russian asset class investors once avoided: Bonds. There was a time when Russian bonds were an avoidable asset class. That time was last year. […]

With potential credit and rate risks weighing on the fixed-income markets, investors who are looking for higher yields may turn to an actively managed junk bond exchange traded fund that has outperformed more popular investment funds. The First Trust Tactical High Yield ETF (NYSEArca: HYLS), an actively managed ETF that tracks high-yield debt securities rated […]

Some the largest money managers are expecting European debt to outpace U.S. Treasuries ahead. Investors can also capitalize on potential fixed-income opportunities overseas with international bond exchange traded funds. BlackRock, Pacific Investment management Co. and Prudential Financial Inc. all believe riskier peripheral European country debt will outperform as the European Central Bank extends its bond […]

Bond investors have witnessed heavy selling in U.S. speculative-grade debt as concerns mount, but international high-yield bond exchange traded funds may be exposed to less risks than the domestic fixed-income markets. European Central Bank asset purchases, assurances from the Federal Reserve that the rate hike will be gradual, attractive yields and relatively contained risks associated […]

Fixed-income exchange traded fund investors who want yield may consider emerging market debt as some observers  believe risks associated with a Federal Reserve interest rate hike have already been priced into the asset category. According to Pacific Investment Management Co., emerging market bonds look attractive after valuations priced in a “a good chunk of risks” […]

Should expectations of higher interest rates gain momentum, it would not be surprising to see investors embrace floating rate exchange traded funds as additions to fixed income portfolios. ETFs such as the iShares Floating Rate Bond ETF (NYSEArca: FLOT), SPDR Barclays Investment Grade Floating Rate (NYSEArca: FLRN) and the Market Vectors Investment Grade Floating Rate […]

With the Federal Reserve beginning to normalize its monetary policy, fixed-income investors may still generate decent yields while hedging against rate risk through a new breed of interest-rate-hedged or zero-duration bond exchange traded funds. Click the image below to head to youtube and check out the interview! The opinions and forecasts expressed herein are solely those […]

The Federal Reserve finally pulled the trigger on hiking interest rates Wednesday, and the beneficiaries are long-term Treasury bonds exchange traded funds? Treasury bond ETFs that track government debt securities with long-term maturities strengthened Thursday, the day after the Fed announced an interest rate hike. The iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT), which […]