|Bid||48.20 x 3000|
|Ask||0.00 x 900|
|Day's Range||52.48 - 52.64|
|52 Week Range||47.35 - 52.68|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.14|
|Expense Ratio (net)||0.12%|
While the Federal Reserve could be readying to lower interest rates later this year, the utility of floating rate notes (FRNs) and exchange traded funds, such as the WisdomTree Bloomberg Floating Rate ...
Many of the most widely followed fixed income benchmarks -- including the Bloomberg Barclays US Aggregate Bond Index -- and the related exchange traded funds weight holdings by market capitalization. The WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (NYSE: AGGY) is one of the premier options for investors looking for alternative to traditional aggregate bond funds. AGGY “is a strategic-beta fund that strives to boost return by overweighting higher-yielding components of the Aggregate Index,” said Morningstar in a recent research note.
The number of fixed income exchange traded funds eschewing weighting by market capitalization in favor of alternative or fundamental weighting methodologies is on the rise. One of the more seasoned options in that group is the WisdomTree Barclays U.S. Aggregate Bond Enhanced Yield Fund (AGGY) , which is nearly three and a half years old. The fund uses a“rules-based approach and re-weights the subcomponents of the Bloomberg Barclays U.S. Aggregate Bond Index to enhance yield, while broadly maintaining familiar risk characteristics.
Most fixed income benchmarks, including global indices, are cap-weighted, but that strategy can leave investors yearning for more income and yield. The WisdomTree Yield Enhanced Global Aggregate Bond Fund (GLBY) debuted earlier this month. GLBY can be seen as the global alternative to the well-known WisdomTree Barclays U.S. Aggregate Bond Enhanced Yield Fund (AGGY) .
Global fixed income exchange traded funds, like many of their domestic counterparts, are frequently weighted by market capitalization. WisdomTree Investments Inc. (NASDAQ: WETF) features an expansive lineup of ETFs, including bond funds, that favor alternative weighting methodologies. The WisdomTree Yield Enhanced Global Aggregate Bond Fund debuted earlier this month.
The fund tracks the Bloomberg Barclays U.S. Aggregate Enhanced Yield Index, which divides the investment-grade-focused Aggregate Index into 20 subcomponents. The index defines these subcomponents by sector (securitized, corporate credit, and government), years to maturity, and credit rating. The strategy offers higher yield by tilting toward corporate bonds and away from U.S. Treasuries relative to the Aggregate Index.
Investors should be careful when navigating the current environment and consider some ETF investment vehicles that are designed to outperform when interest rates rise. Overall, we can anticipate further strengthening in the economy, which will lead to a tighter monetary policy out of the Fed. For instance, the government recently revealed the U.S. economy expanded at a 4.1% rate, its best quarterly performance since 2014. Flanagan warned that the U.S. budget deficit has widened and the Treasury Department has been increasing supply of U.S. Treasuries - Treasury supply for the fiscal year 2018 is expected to be in the $1 trillion to $1.5 trillion range, compared to the $519 billion issued for the fiscal year 2017.