|Bid||0.00 x 4000|
|Ask||0.00 x 36200|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||1.29%|
|Beta (5Y Monthly)||1.00|
|Expense Ratio (net)||0.05%|
A coronavirus outbreak in Wuhan, China that has already killed four people is starting to permeate its way into the capital markets, especially safe haven Treasury bonds as prices rose and yields fell. The benchmark 10-year Treasury note fell four basis points to reach 1.78% while the 30-year yield fell to 2.32%. “The Treasury market benefited overnight from coronavirus concerns as well as Moody’s downgrade of Hong Kong’s long term debt rating,” said Ian Lyngen, BMO’s head of U.S. rates.
1986 was the last year Halley’s Comet passed the Earth and it was also the last time a 20-year Treasury bond was around. However, the Treasury Department is bringing the 20-year bond back to help pay the ...
Long-term, short-term, municipal, Treasury, high yield, investment grade—it seemed wherever category of bonds investors allocated their capital, they were winners in the bond market. “This past year was one of the best since the financial crisis for fixed-income returns,” wrote Brian Moriarty in Morningstar. As Moriarty mentioned, the central bank’s interest rate policy saw Treasury yields hit basement-level lows in 2019, which was a boon for bond prices.
How popular were bond ETFs in the U.S. during 2019? If $150 billion says much, then very popular indeed—according to data from Bloomberg Intelligence, fixed income ETFs took in the most money in one year since 2014 and reached over $800 billion in total assets. Additionally, the more cost-cautious investor is looking at their relatively low expense ratios as an effective way to get core bond exposure as opposed to purchasing the debt issues themselves.
The iShares Core U.S. Aggregate Bond ETF (AGG) has been the go-to ETF when it comes to getting core bond exposure, but it’s certainly not the only option. When investors want a bit more yield in exchange for more credit risk, they can opt for funds like the iShares Core Total US Bond Market ETF (IUSB) . IUSB seeks to track the investment results of the Bloomberg Barclays U.S. Universal Index.
After 2019’s strong performance for stocks and bonds, expect both assets to put out a showing in 2020 that’s akin to a musical artist’s sophomore slump after a chart-topping debut album. Nuveen’s U.S. equity strategist Bob Doll recently predicted in a MarketWatch report that both stocks and bonds will gain “less than 5% for only the fourth time in 25 years.”
After 2019’s strong performance for stocks and bonds, expect both assets to put out a showing in 2020 that’s akin to a musical artist’s sophomore slump after a chart-topping debut album. “We observe that stocks are not particularly cheap at this point, as prices rose considerably in 2019,” Doll wrote. “As a portfolio manager, I talk to CEOs all the time and their most common complaint is that they can’t find workers,” Doll said during a webcast unveiling his predictions.
2020 will more than likely see the active versus passive debate rage on when it comes to ETFs, but it’s difficult to deny a decade of dominance by passive funds. With their low-cost strategies attracting investors, can passive investing beat out active funds for another 10 years?
PennMutual provides a look at seven major exchange-traded funds, ETFs, which track everything from stocks to gold to emerging-market debt, to gauge how expensive liquidity can get during a crisis.
With the Federal Reserve keeping rates unchanged in its latest interest rate policy decision, it might be unclear what investors should do when it comes to interest rates in 2020 as 2019 winds down. However, if one were to follow the herd, then diving into bonds irrespective of what the Fed does in 2020 is the way to go.
Fixed income manager BNY Mellon Investment Management says more must be done by financial advisors to educate clients on the use of fixed income when it comes to planning for retirement. “Investors who work with financial advisors are more likely to believe they have a good grasp of fixed income compared to those without an advisor: 64% who’ve worked with one say they understand fixed income “a lot” or “somewhat” compared to 35% of those without an advisor, according to a report from BNY Mellon Investment Management, which notes that it’s the third-largest fixed income manager by assets,” wrote Alex Padalka in Financial Advisor IQ.
With the Federal Reserve keeping rates unchanged in its latest interest rate policy decision, it might be unclear what investors should do when it comes to interest rates in 2020 as 2019 winds down. Investors continue to pour capital into bond funds and 2020 could be another banner year for fixed income. "Investors continue to pile into bond funds as 2019 winds down and as one of the biggest fund companies by assets under management, Vanguard bond funds have likely received much of investor's savings," a U.S. News & World Report article by Debbie Carlson said.
Since 2003, the iShares Core U.S. Aggregate Bond ETF (AGG A+) has been the go-to fund for investors who want that core bond exposure, and with close to 20 years under its belt (not to mention $67 billion in assets under management), AGG is still a great option.
It looks like the government of India is set to debut its first bond exchange-traded fund (ETF), which will be launched by investment firm Edelweiss Asset Management. The ETF will come in two flavors—one with a 3-year note and the other a 10.
Aggregate bond ETFs, such as the iShares Core US Aggregate Bond ETF (AGG), remain staples for many advisors and investors. AGG is a broad play on mostly domestic investment-grade debt and generally invests at least 90% of its net assets in component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities of its underlying index. “The Aggregate Bond Index includes investment-grade U.S.-dollar-denominated bonds with at least one year until maturity,” said Morningstar in a recent note.
Since 2003, the iShares Core U.S. Aggregate Bond ETF (AGG) has been the go-to fund for investors who want that core bond exposure, and with close to 20 years under its belt (not to mention $67 billion in assets under management), AGG is still a great option. "Of the 750-plus fixed-income exchange-traded funds on the menu, iShares Core U.S. Aggregate Bond ETF is the largest," wrote Neal Kosciulek in Morningstar. Long the barometer for U.S. investment-grade bonds, AGG's benchmark--the Bloomberg Barclays U.S. Aggregate Bond Index--has changed drastically in the years since the financial crisis.
While equities reeled early in the week, President Donald Trump declared, “I don’t watch the stock market,” contrary to his many tweets touting records set by the major indexes since he has been in the White House. “Jobs are what I watch,” he added, quite presciently, as it turned out, when the Department of Labor on Friday morning delivered boffo employment numbers for November. The headline unemployment rate ticked down a tenth, to 3.5%, the result of a rather tepid 83,000 increase in the separate survey of households and a smaller, 40,000 rise in the labor force.
As 2019 comes to a close, it’s going to be another banner year for bonds, which have moved higher along with stocks thanks to an uncertain economic backdrop that saw investors pile heavily into bonds, especially during the summer.