Treasury Bonds

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 […]

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. […]

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 […]

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 […]

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 […]

Fixed-income exchange traded fund investors who want yield may consider emerging market debt as some observersĀ  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” […]

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 […]

Interest rate-sensitive assets and related exchange traded funds were relatively unfazed by the Federal Reserve’s announced first rate hike since 2006, suggesting that the markets may have already priced in higher rates. The Federal Open Market Committee announced that it will raise the benchmark interest rate by a quarter of a percentage point to between […]

While many anticipate bonds and debt-related exchange traded funds will likely fall as rates rise, longer-term Treasuries may outpace short-term bonds and corporate debt in a rising rate environment. The iShares 1-3 Year Treasury Bond ETF (NYSEArca: SHY), which has a 1.85 year duration and a 0.77% 30-day SEC yield, has gained 0.7% year-to-date. Meanwhile, […]

With the Federal Reserve largely expected to announce the start of rate normalization next week, the higher interest rates could cause bond exchange traded funds to underperform in the short-term. When interest rates rise, the price of older bonds with lower rates fall. Since new bonds are issued at the newer and higher rates, investors […]

The Federal Reserve could announce an interest rate hike next week. Consequently, fixed-income investors may want to think about ways to limit the negative impact of rising rates, such as moving down the yield curve to short-term bond exchange traded funds. When interest rates rise, the price of older bonds with lower rates fall. Since […]

U.S.-listed exchange traded funds continued to attract billions of dollars in November as low-cost passive strategies enticed investors in a volatile market. Erik Oja, S&P Capital IQ equity analyst covering asset managers, argues that long-term trend away from active funds to passive funds was exacerbated during the recent volatility, with BlackRock benefiting the most from […]

As many expected the Federal Reserve will only gradually raise interest rates, investors can still hold on to Treasuries for income exposure. However, people may want to consider Treasury inflation protected securities and related exchange traded funds in the event the unrealistically low inflation expectations prove to be wrong. “With the economy unable to break […]

Exchange traded fund investors are dumping Treasury bond exposure at their quickest pace in over a year ahead of rising expectations for the Federal Reserve’s first interest rate hike in almost a decade. In November, among the top ETF redemptions, the iShares 1-3 Year Treasury Bond ETF (NYSEArca: SHY) saw $1.4 billion in net outflows, […]

For the first time since June, exchange traded funds are dumping their fixed-income holdings in droves ahead a potential December Federal Reserve interest rate hike. ETF investors yanked $1.2 billion from fixed-income funds in November, Bloomberg reports. Pushing bond ETF investors out the door, the Federal Reserve is expected to announce its first interest rate […]

As the Federal Reserve contemplates a December interest rate hike, investors can turn to inverse Treasury bond exchange traded funds to lower a fixed-income portfolio’s overall duration and hedge against rising rates. For example, the popular ProShares UltraShort 20+ Year Treasury (NYSEArca: TBT), which has $2.8 billion in assets under management, has been a go-to […]

As the markets prepare for a rising interest rate environment, bond exchange traded fund investors may turn to more defensive strategies to prop up performance and mitigate rate risks. Charles Schwab strategists argue that fixed income will offer opportunities as the Federal Reserve is set to hike interest rates, but the strategies may boring, reports […]

After the Federal Reserve stated it was standing pat for the time being in and riskier assets began to rally off the recent selling, U.S. corporate bond exchange traded funds saw their largest monthly inflows ever. U.S. corporate debt-related ETFs saw $8.3 billion in inflows over October, reports Eric Balchunas for Bloomberg. High-yield corporate bond […]

Despite signaling a potential interest rate hike for December, the Federal Reserve’s overtures fell on deaf ears in the fixed-income market, with junk bond exchange traded funds largely ignoring the rate risks. Over the past week, the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) and SPDR Barclays High Yield Bond ETF (NYSEArca: […]

Markets and exchange traded funds jostled late-Wednesday after the Federal Reserve referenced a December interest rate hike. “In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress–both realized and expected–toward its objectives of maximum employment and 2 percent inflation,” the Fed said in a […]

The low-rate environment and dissipating volatility are bolstering stocks. However, exchange traded fund investors may want to think about hedging against another shakeout in the equities market with safer assets like Treasuries. Currently, the equities market is benefiting from the recent dip in interest rates, which continued last week as yields on benchmark 10-year Treasuries […]

In Japan, the world’s largest leveraged exchange traded fund is growing too large to control. Nomura Asset Management Co. will halt subscription orders for its Next Funds Nikkei 225 Leveraged Index ETF, along with two other funds, from Friday, stating that underlying liquidity is not deep enough to ensure the leveraged products can meet their […]

While the U.S. is stuck with an anemic inflation rate, investors can ride out a deflationary environment through certain assets and exchange traded funds. According to the Bureau of Labor Statistics, the total national rate of inflation was 0.2% in August, reports Jeff Cox for CNBC. Only the West had a positive Consumer Price Index […]

Investors have increasingly turned to exchange traded funds as their go-to investment vehicle of choice for fixed-income exposure as liquidity in the underlying debt market dries up, especially after the new banking rules. For instance, investment-grade corporate bond ETFs attracted $7.7 billion in net inflows over the first nine months of 2015, according to S&P […]

Barring an external shock that sends global risk assets lower, the Federal Reserveā€™s (Fed) decision to keep interest rates unchanged while lowering its projected pace of future rate hikes is likely to support a continuation of the heavy pace of new corporate bond issuance and merger and acquisition (M&A) activity in the US investment grade […]

Even though the Federal Reserve left rates unchanged, fixed-income exchange traded fund investors can still take steps to diminish the negative effects of higher interest rates down the line. On the recent webcast, Fixed Income, Portfolio Construction and The Fed, Matthew Bartolini, Research Strategist at State Street Global Advisors, points out that the probability of […]