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Short-term Treasury bond exchange traded funds have been weakening and dipped below their short-term trendline this month, with yields on 2-year Treasury notes rising to their highest in three years. Over the past month, the iShares 1-3 Year Treasury Bond ETF (NYSEArca: SHY), Schwab Short-Term U.S. Treasury ETF (NYSEArca: SCHO) and Vanguard Short-Term Government Bond […]

In anticipation of rising interest rates, bond exchange traded fund investors can consider a branching out across fixed-income classes to help diversify their portfolios. While rising rates are a negative for fixed-income assets, investors should not move entirely out of bonds, writes Scott E. Couto, president of Fidelity Financial Advisor Solutions, for InvestmentNews. Alternatively, Couto […]

Despite the recent pullback in equities, markets still appear strong . Investors may be tempted to eschew fixed-income assets in favor of full equity exposure, but bond exchange traded funds still have beneficial diversification qualities. “Diversification is the equivalent of diet and exercise,” certified financial planner Kent Grealish, of Grealish Investment Counseling, said in a […]

Exchange traded fund investors have to adapt to a dynamic market. Currently, we are seeing a shift in sector and style rotation within the equities market and vulnerability in short- and medium-term Treasuries. In the equities space, some of last year’s outperformers are beginning to stumble, Russ Koesterich, Managing Director, BlackRock’s Global Chief Investment Strategist, […]

After sinking billions of dollars into exchange traded funds holding U.S. Treasuries in January and February, investors are having second thoughts. Early this month, Nicholas Colas, chief market strategist at ConvergEx Group, a global brokerage company based in New York, said “Of the $14.2 billion in total ETF inflows (and $18.3 ex-SPY) for February, bond […]

Given the trajectory of the U.S. economy, the Federal Reserve may hike rates sooner than anticipated, strengthening U.S. dollar exchange traded funds but weighing on short-term Treasury bonds and gold. Federal Reserve Chair Janet Yellen revealed that they will taper the asset purchase program by anther $10 billion and estimated that the Fed could hike […]

Bond exchange traded funds are outperforming equities as risk-off sentiment permeates U.S. financial markets. The iShares Core Total U.S. Bond Market ETF (NYSEArca: AGG), which tracks the broad U.S. investment-grade bond market, including government, corporate and mortgage pass-through securities, is up 1.47% year-to-date while the S&P 500 Index has gained 1.45% and the Dow Jones […]

Treasury yields are rising in the low end of the yield-curve as investors anticipate the eventual end to the Fed’s monthly bond purchasing program. Consequently, short-term bond and related exchange traded fund prices could begin to decline. Before the U.S. sells $30 billion of 3-year Treasury notes, investors pushed up 3-year note yields to 0.81%, […]

Fixed-income assets are making a comeback as investors turn to safer, more conservative plays in response to rising volatility in the equities market. Specifically, more people are turning to fixed-income exchange traded funds as their go-to investment vehicle. During times of market volatility and increased risk aversion, investors typically dump riskier assets and shift over […]

Treasury yields are beginning to tick higher after the bout of volatility sent investors to safety. While rates haven’t surged, Treasury bond exchange traded fund investors should prepare for a rising rate environment. “Bond investors and traders should consider preparing for the next wave of volatility, and the potential for rising yields should the economy […]

Treasury bond exchange traded funds have been some of the most popular investments over the past week as investors turn to safer assets to hedge against the current bout of volatility. Specifically, the iShares 1-3 Year Treasury Bond ETF (NYSEArca: SHY) was the most popular ETF for the week ended Feb. 7, bringing in $3.6 […]

In just a little over a month this year, asset outflows in emerging market exchange traded funds have already outpaced redemptions for all of 2013 as slow growth and currency concerns instigated a global sell-off. The Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) and iShares MSCI Emerging Markets ETF (NYSEArca: EEM), the two largest emerging […]

Rising interest rates have pushed fixed income investors to allocate toward shorter durations, but floating rate note exchange traded funds could be a better fit. Floating rate ETFs have been outperforming short-duration bond ETFs as interest rates begin to rise after hitting a three decade low. ETFs in this category include iShares Floating Rate Note […]

With U.S. regulators taking a closer look at money market funds, fund managers are trying to take preemptive steps to thwart regulatory actions. Still, observers doubt it is enough and some investors are contemplating short-duration bond exchange traded funds as an alternative. Wells Fargo Advantage Funds is the latest to start posting daily disclosures of […]

As Treasury yields begin to rise, bond exchange traded fund investors are thinking about positioning ahead of rising rates after a three decade long bull rally in government debt. However, we may not see a quick rise in rates anytime soon, according Charles Schwab analysts. “Our outlook is for interest rates to remain in a […]

After the multi-decade long rally in the Treasuries market, yields are now hovering around historic low rates. If you are wary of a potential rising rate environment, short duration and inverse Treasury exchange traded funds could help mitigate the risks in a fixed-income portfolio. “With interest rates at all-time lows, potential upside in any new […]

With the recent bouts of market volatility still fresh, investors are seeking ways to diminish overall risk. In response, IndexIQ is launching a new market neutral exchange traded fund based on what hedge funds are holding. On Oct. 4, the IQ Hedge Market Neutral Tracker ETF (NYSEArca: QMN) will begin trading. QMN will charge a […]

Treasury yields have ticked higher from the summer low as central bank stimulus has improved sentiment and nudged investors into riskier assets. Bond ETF investors can protect themselves from rising interest rates by moving into funds with shorter durations, while ETFs that short Treasuries are a more aggressive play. Yields on the 10-year Treasury nearly […]

In a sharp turn from the previous months, investors dove into the equities market and stock exchange traded funds over July but still maintained some interest in fixed-income assets. As of the end of July, U.S.-listed ETF and exchange traded note assets totaled $1.21 trillion, or a 3% gain month-over-month and 9% higher than the […]

Despite a choppy month on Eurozone debt concerns, both stock and bond exchange traded funds saw positive flows in June. While ETF investors moved back into the equities market, fixed-income assets still remained a hot draw. By the end of June, assets in U.S.-listed ETFs and exchange traded notes stood at $1.18 trillion, or 4% […]

ETF Spotlight on the IQ Hedge Macro Tracker ETF (NYSEArca: MCRO), part of an ongoing series. Asset: $51.3 million. Objective: The IQ Hedge Macro Tracker ETF tries to reflect the performance of the IQ Hedge Macro Index, which tries to replicate a combination of hedge fund macro and emerging market strategies. The fund does not […]

Fixed income exchange traded funds have become the central focus of many investors, as equity markets remain volatile and big name providers are offering new products tracking this market segment. PIMCO has been given credit for bringing this market sector to the mainstream with the launch and success of the PIMCO Total Return ETF (NYSEArca: […]

The Eurozone grumbling sapped investor confidence, stoking a “risk-off” sentiment and compressing the exchange traded fund universe, as investors dumped equities and commodities in favor of safe-haven fixed-income assets. At the end of May, total assets in U.S.-listed ETFs and exchange traded notes stood at $1.14 trillion, up 2% over the same month last year, […]

After the high volatility witnessed in the aftermath of the financial downturn and, again, in the summer last year, advisors and investors are looking for more ways to manage risk. Consequently, bond exchange traded funds have garnered a huge following, and now fund providers are expanding their lineups to include increased opportunities for diversification. We […]

Treasury prices are falling and yields are rising, but exchange traded fund investors can mitigate the hit in their bonds all0cations if they move down to short-end of the yield curve. Interest rates at various points on the yield curve are hovering around their historic lows, with the benchmark 10-year Treasury providing a 2.20% yield, […]

The last several days have been absolute carnage for many fixed income segments of the market, and their corresponding ETFs. We have highlighted options trading with bearish motivations toward longer dated treasuries for months now, involving call buying in ProShares UltraShort 20+ Year Treasury Bond (NYSEArca: TBT) and put buying in iShares 20+ Year Treasury […]

U.S. Treasury bond exchange traded funds rose Monday while stocks weakened on reports the congressional “supercommittee” has been unable to put a deal together on reducing the U.S. deficit before a key deadline. Europe’s lingering debt crisis is also pushing Treasury ETFs higher. In an attempt to safeguard assets, investors have sought refuge in U.S. […]

Exchange traded funds tracking short-term U.S. Treasuries have fallen recently with investors abandoning safe havens for riskier assets, but one technical analyst thinks the bond ETFs are due for a bounce. Although U.S. bond markets were closed Monday for Columbus Day, Treasury ETFs were trading along with stocks. The iShares Trust Barclays 1-3 Year Treasury […]

Cambria Global Tactical ETF (NYSEArca: GTAA) launched nearly one year ago, and the exchange traded fund has attracted approximately $164 million in assets under management since inception. Issued by AdvisorShares, which is familiar in the industry as pioneers in actively managed ETFs, GTAA is designed to deliver absolute returns while reducing overall volatility and downside […]