More investors have also been attracted by the rising yields in short-term debt, with yields on two-year U.S. Treasury notes now at 2.67, compared to the S&P 500’s dividend yield of 1.9%, the widest disparity since the 2008 financial crisis.
“Risk-adjusted returns on stocks versus Treasurys are not as compelling as they have been,” Brian Nick, chief investment strategist at Nuveen, told the WSJ.
One ETF that is benefitting is the ProShares Investment Grade—Intr Rt Hdgd (BATS: IGHG). IGHG was up 0.27% today as of 2:05 p.m. ET and is up 2.36% within the last three years.
IGHG investment seeks investment results that track the performance of the Citi Corporate Investment Grade (Treasury Rate-Hedged) Index, which is comprised of long positions in USD-denominated investment grade corporate bonds issued by both U.S. and foreign domiciled companies and short positions in U.S. Treasury notes or bonds–the latter helping to contribute to its upward momentum today.
For more information on the ETF industry, visit our ETF performance reports category.