|Bid||112.89 x 1400|
|Ask||114.03 x 1200|
|Day's Range||112.59 - 112.94|
|52 Week Range||103.94 - 114.30|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.05%|
With over $65 billion in total assets accumulated since its inception in 2003, the iShares Core U.S. Aggregate Bond ETF (NYSEArca: AGG) is the big fish in an even bigger sea of bond exchange-traded funds ...
As more investors pile into safe-haven government debt as a default risk-off maneuver, Treasury Secretary Steve Mnuchin says a 50-year bond offering is under serious consideration. It’s something the Treasury department has been mulling for some time, but Mnuchin confirmed the idea could actually come into fruition.
As more investors pile into safe haven government debt as a default risk-off maneuver, Treasury Secretary Steve Mnuchin says a 50-year bond offering is under serious consideration. It’s something the Treasury department has been mulling for some time, but Mnuchin confirmed the idea could actually come into fruition.
A lot of market mavens are trumpeting the benefits of shifting into value and away from growth in the current market environment, but how can that translate into the fixed income space? One area is investment-grade ...
That was fun while it lasted. With the Federal Reserve cutting interest rates and investors rushing into bonds for safety, yields have dropped like a stone. Many traditional income products -- such as CDs, money market funds and bond ETFs like the iShares Barclays Aggregate Bond Fund (NYSEArca:AGG) -- just aren't cutting it once again. Welcome back to the "new normal." For investors seeking income, this is a big deal.But isn't have to be. Luckily, there are ways to boost your income even during this period of falling interest rates and yields.That comes from a hefty dose of close-ended funds (CEFs).InvestorPlace - Stock Market News, Stock Advice & Trading TipsClosed-ended funds are an often-ignored fund type, but they do offer plenty of benefits for those investors seeking dividend funds. Like ETFs, CEFs trade throughout the day on exchanges. However, closed-end funds issue a set number of shares when launched. This allows them to trade at discounts to their actual values. This plus the ability to use some leverage allows them to boost yields. For investors looking for high-income, CEFs offer some of the best potential among dividend funds. * 10 Stocks to Sell in Market-Cursed September With that, here are three closed-ended funds that you should put on your list. Nuveen Tax-Advantaged Dividend Growth Fund (JTD)Source: Shutterstock Distribution Yield: 7.31%Discount To Net Asset Value (NAV): 1.98%With yields on bonds and cash now dropping again, stocks can pick up the slack. Dividends remain a great way to scoop up some extra yield. So, when combining the power of stock dividends with the advantages of closed-ended funds, investors can really win. A top choice could be the Nuveen Tax-Advantaged Dividend Growth Fund (NYSE:JTD).JTD seeks to provide a high yield and some capital appreciation by investing in a basket of mid- and large-cap stocks. The kicker is that the closed-ended fund looks to mitigate the effects of federal taxes. It accomplishes this goal in two-stages. One, JTD will hold those stocks that pay so-called qualified dividends. That is dividends that are taxed at just a 15% rate. Top holdings include JPMorgan (NYSE:JPM) and Microsoft (NASDAQ:MSFT). Secondly, the CEF's management tends to hold onto those stocks for a while to defer/reduce capital gains. The result is a more tax-efficient dividend fund that can be held in a regular brokerage account.And when you add in some leverage, JTD pays a juicy 7.31% yield. Perhaps the best part is the fund can currently be had for a 1.68% discount to its real worth when looking at its NAV.As for returns, the short run has been a bit bumpy for JTD. But over the longer haul, the combination of dividend income and capital gains has helped the CEF score a 13.84% average annual return over the last decade. BlackRock MuniYield Quality (MQY)Source: Shutterstock Distribution Yield: 4.24%Discount To NAV: 8.65%If there is one area where closed-ended funds are vastly superior to ETFs and active mutual funds, it has to be municipal bonds. Municipal bonds can be a haven for tax-sensitive and high-earning investors. Free from federal -- and in some cases, state & local -- taxes, munis are a great way to boost your income without having to pay Uncle Sam. Thanks to the ability of a CEF to use leverage, those tax-free distributions are even greater.For example, the BlackRock MuniYield Quality (NYSE:MQY) is currently yielding 4.54%. The key is that yield is tax-free for most investors. For someone in the highest tax bracket, you'd need to have a yield of 7.18% to get the same amount of income.What's particularly impressive about MQY and that yield is the kind of muni bonds it holds. Just like we all have different credit scores, various states and local governments' finances are different as well. This leads to variety of different credit ratings. MQY invests only in those muni bonds that are in the three highest quality rating categories. A or better. Currently, top muni bonds like this are paying about half that yield. It's the use of leverage that boosts the income potential.Even better is that investors can now buy that top-quality muni portfolio for nearly 9% discount to MQY's underlying value. * Take Buffett's Advice: 5 Vanguard Funds to Buy So, for investors looking for a high-tax-free yield, MQY as well as its same strategy sister CEFs -- the MuniYield Quality Fund III (NYSE:MYI) and MuniYield Quality Fund II (NYSE:MQT) - -make ideal choices. MFS Multi-Market Income Trust (MMT)Source: Shutterstock Distribution Yield: 8.73%Discount To NAV: 9.18%With the flight to quality bonds and Fed dropping rates, flexibility is key within the fixed income sectors. It takes a deft hand to get a bit more yield from bonds. And that is why the MFS Multi-Market Income Trust (NYSE:MMT) could be a great closed-ended fund to own.MMT is considered a "go anywhere" bond fund. The fund's management has discretion on what to buy and when, providing the CEF the ability to shift around its portfolio as needed. As a result, its portfolio is invested in a wide range of different bonds varieties -- from high-yield and emerging-market debt to investment-grade corporate debt and treasury bonds. Given the current rocky environment, that has MMT loading up on safe treasury bonds and high-grade corporates.But there is enough "spice" to provide it with a higher yield than just a bread-n-butter intermediate bond fund. Currently, that yield is a high 8.73%. As with the other closed-ended funds on this list, leverage does much of the work.With a long operating history- dating back to the 1980s- and big 9% discount to its NAV, MMT may just be what your portfolio needs to boost its fixed income sleeve. the ability to shift around will suit investors during good times and in bad.Disclosure: At the time of writing, Aaron Levitt did not hold a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 3 High-Yielding Closed-Ended Funds to Boost Your Income appeared first on InvestorPlace.
It’s only a matter of time before it’s more in the United States,” Greenspan said on CNBC’s “Squawk on the Street ” on Wednesday, adding investors should watch the 30-year Treasury yield, which hit an all-time low last week. “We’re so used to the idea that we don’t have negative interest rates, but if you get a significant change in the attitude of the population, they look for coupon,” Greenspan said. While bonds have been the default safe haven amid the recent volatility in the equities market, it can be daunting to look at all the options, such as government debt and corporate bonds.
While bonds have been the default safe haven amid the recent volatility in the equities market, it can be daunting to look at all the options, such as government debt and corporate bonds. One way to go about building a proper bond portfolio is to consider the risks first and foremost. When it comes to investing in bonds, there are typically two camps, according to MarketWatch's Jared Dillian.
The concept of buy and hold could reach extreme levels in the government debt market as U.S. officials are contemplating the issuance of ultra-long Treasury bonds that could span 50 to 100 years. Per a report in Barron's, "U.S. officials have revived a conversation about issuing ultra-long Treasury bonds, which would mature in 50 to 100 years, now that long-term borrowing costs have fallen to record lows.
The U.S.-China trade war essentially poured a vat of honey all over the bond market and now investors are flocking to them like hungry bees. In fact, they've poured a record $155 billion into safe-haven bonds over the past three months, according to data from Bank of America Merrill Lynch. A number of flows has been directed towards risk-off government bonds, which attracted $7.1 billion in last week alone, which represents the fourth-biggest ever inflow as market volatility from trade war news racked the markets.
Investment company Security Benefit Life Insurance Co (Current Portfolio) buys Super League Gaming Inc, sells iShares Core U.S. Continue reading...
The capital markets are definitely keeping a watchful eye on the 2-year and 10-year yield curve, which briefly inverted during Wednesday’s market session. An inverted yield curve is of particular interest as a tried-and-true recession indicator. “The US equity market is on borrowed time after the yield curve inverts.
Market volatility is opening the pathway for investors to flock to safe haven government debt, which is causing yields to fall. As such, a yield curve inversion—a typical sign ahead of a recession—is forming with respect to the 2- and 10-year Treasury yields. This should cause the rate-sensitive 2-year note yield to fall as well, but that hasn’t been the case even with the change in the central bank’s interest rate policy.
Rate cuts and trade wars have been giving investors more than the necessary dosage of volatility as of late, but it opens up opportunities for fixed income exchange-traded fund (ETFs). For investors looking for that safe-haven bond exposure, it might be best to start with the largest provider of fixed income ETFs. "While the growing adoption by wealth management and institutional investors is a boon for most asset managers, certain firms are favorably positioned relative to others.
It doesn’t matter if it’s in the long or short end of the yield curve, with violent market movements like those investors have been experiencing lately, it’s a reminder that a move to bonds can benefit ...
Bond ETFs and funds are experiencing record inflows as investors rush to safety amid global trade tensions and slowing economic growth.
It’s easy to overlook bonds as opposed to equities given their more static returns in nature as opposed to the more dynamic stocks that can move and shake when markets are roaring, as well as vice versa. While bonds may not be ideal for the adrenalin-fueled investor, they can still gain that much-needed fixed income exposure via exchange-traded funds. Janet Brown, a finance contributor at Forbes, cited three common misconceptions investors have when it comes to core fixed income exposure—bonds are a high risk proposition when rates rise, they don’t generate enough returns and they’re only ideal for retirees.
A 25-year-old can save $1 million or more by age 70 in a 401(k) account. Just don't invest too much in bonds, which can sink good retirement planning.
Skilled management can be worth well than its expenses in any investment vehicle, asserts Brett Owens, fund specialist, income expert and editor of Contrarian Outlook.
Alight Solutions 401k Index showed that 401k participants piled into fixed income as fears of a global economic slowdown could be stoking investors to head for the exits when it comes to equities. "Equity ETFs did garner $20 billion of inflows.
Just because you're rich doesn't mean you're right, apparently. This year's mistake cost the wealthy an estimated $136 billion so far.
According to the latest report on exchange-traded fund (ETF) flow data from State Street Global Advisors, fixed income exchange-traded fund (ETF) inflows were out of this world in the month of June, garnering over $25 billion. "Even with a 6% rally in global equities, investors allocated a record amount to fixed income ETFs," wrote Matthew Bartolini, CFA Head of SPDR Americas Research State Street Global Advisors, in the report. The record number of inflows into bond ETFs allowed for record capital allocations into the fixed income space.