|Bid||0.00 x 800|
|Ask||0.00 x 1300|
|Day's Range||111.96 - 112.12|
|52 Week Range||111.67 - 121.85|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.40|
|Expense Ratio (net)||0.15%|
As the capital markets were in the thick of the extended bull run that peaked in the summer prior to the October sell-offs, high-yield assets saw an influx of investor capital, beating out their higher-rated rivals in investment-grade corporate bonds. After investors got washed through the October volatility cycle, that may have tamped down their risk-on sentiment and this is where Goldman Sachs sees a potential buying opportunity after investment-grade debt fell out of favor during the bull run. With investors hungry for risk, the yields in investment-grade corporate bonds weren't enough to satiate that appetite.
During a volatile October month, traders headed for the entrance to bond exchange-traded funds (ETFs) just as often as they headed for the exits. In particular, trader volume soared the most in the iShares Core US Aggregate Bond ETF (AGG), which saw $2.6 billion in withdrawals or 5% assets under management. Next, the iBoxx $ Invmt Grade Corp Bd ETF (LQD) experienced an outflux of 6% of its assets under management.
Some fixed income exchange traded funds are languishing amid the Federal Reserve's 2018 rate tightening plans, prompting investors to depart some longer-dated, traditional bond ETFs. “Despite growing demand ...
Municipal bonds and related exchange traded funds may not be the most exciting asset category, but they have been holding up relatively well in the fixed-income space. “Muni performance has been nothing ...
The Federal Reserve has hiked interest rates three times this year, prompting some fixed income investors to depart some of the largest bond ETFs. For example, the SPDR Barclays High Yield Bond ETF (JNK) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) are among the top 10 ETFs in terms of year-to-date outflows. The Federal Reserve’s rising interest rates have been a main contributing factor in the downfall of investment-grade bonds this year.
With volatility spiking and the markets being thrown into chaos, investors have turned to ETFs as one of their go-to tools to access the markets. For example, on Tuesday when U.S. Markets were down 3.8% and the CBOE Volatility Index or VIX jumped to a 23 reading from 16, 35% of the total notional market value was attributed to ETF exchanging hands, according to Deutsche Bank data. Furthermore, looking at the outflows in iShares iBoxx $ High Yield Corp Bd ETF (HYG) , SPDR Barclays High Yield Bond ETF (JNK) , iShares Core US Aggregate Bond ETF (NYSEArca: AGG) and iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) with a combined excess of over $7 billion, it is worth mentioning that there are dozens of ETFs that are built as an alternative to simply holding cash.
"I think fixed-income portfolio managers have had their come to Jesus moment," said Janet Johnston, TrimTabs asset management portfolio manager. "They were going with the Fed, not fighting with the Fed. Since 1998, when rates have gone up, stocks have gone up. The lockstep between stocks and bonds as of late is not something typically seen within the capital markets as both are prone to marching to the beat of their own drum.
Investment-grade debt and bond-related exchange traded funds just can't catch a break this year. U.S. investment-grade debt has experienced one of the worst performance of any major sector of the fixed-income asset class so far this year, CNBC reports. ETF investors have also been avoiding the asset category, pulling some $3.5 billion from LQD so far this year, according to XTF data.
The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is the largest exchange traded fund dedicated to investment-grade corporate debt and remains the go-to choice for many investors looking to asset this asset class. LQD seeks to track the investment results of the Markit iBoxx USD Liquid Investment Grade Index composed of U.S. dollar-denominated, investment-grade corporate bonds. LQD allocates 95 percent of its total assets in investment-grade corporate bonds to mitigate credit risk.
Broad investment-grade bond index funds sometimes get a bad rap for their bias toward Treasuries and agency mortgage-backed securities, which limits their yield. Investors can accomplish that more cheaply by buying an investment-grade corporate-bond index fund like iShares iBoxx $ Investment Grade Corporate Bond ETF LQD . There is a lot to like about this fund, from its durable cost advantage to its broadly diversified market-cap-weighted portfolio that approximates the composition of the U.S.-dollar investment-grade corporate-bond market.
Last week, the Federal Reserve hiked interest rates for the third time this year, setting the stage for another rate hike in December and several more interest rate increases in 2019. Some fixed income ...
Earlier this week, the Federal Reserve raised interest rates for the third time this year , setting the stage for another rate hike of 25 basis points in December and perhaps several more increases in ...
Investors appear ready to continue forward with the rate-hiking prescription written for the federal funds rate by the Federal Reserve who will announce their interest rate decision later today. It's widely expected that Fed Chairman Jerome Powell will announce another rate hike to temper economic growth, causing benchmark Treasury yields to retreat--the 10-year fell to 3.078 and the 30-year yield notched lower to 3.213. The Fed began its two-day monetary policy meeting yesterday as they are likely to pore over a bevy of data showing the economy is moving forward at full speed, including an extended bull stock market run that has already seen major indexes like the S&P 500 reach record levels.
The iShares Core U.S. Aggregate Bond ETF (NYSE: AGG), the largest U.S.-listed fixed income exchange traded fund, reached its 15th birthday Sept. 22, making it an appropriate time to examine the bond ETF boom. When AGG debuted, a scant number of bond ETFs were on the market. Various data points indicate the growth of bond ETFs will continue.
The Institute for Supply Management released a report on Thursday that revealed a growth increase in U.S. service sector activity--a pace that was higher than expected in the month of August. "There was a strong rebound for the non-manufacturing sector in August after growth 'cooled off' in July," said Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee.
The fixed-income market has played second fiddle to equities, but there are still areas of opportunity that bond exchange traded fund investors can look to. “The fixed income market remains challenging, ...
As is the case with many equity-based exchange traded funds, some of the largest fixed income ETFs use cap-weighted indexes, meaning the largest debtors are among those funds’ top holdings. That includes ...
Weighting stocks by market value is the most frequently used weighting scheme among index funds and exchange-traded funds (ETFs). This is also true among fixed income ETFs, including corporate bond funds. What that means is that the largest holdings in traditional corporate bond ETFs, such a the iShares iBoxx $ Investment Grade Corporate Bond ETF ( LQD), are the biggest issues.
Benchmark Treasury yields ticked down as the minutes of the last Federal Reserve meeting surfaced, which suggest that come September, the central bank will most likely raise rates for a third time this year. Short-term maturities ticked higher with the 2-year yield rising to 2.608 and the 5-year to 2.712. During its last interest rate policy decision in June, the Fed raised the federal funds rate 25 basis points to its current level of 2. Despite the majority expecting rates to rise, trade concerns could give the Fed enough pause to warrant keeping rates unchanged.
As summer draws to a close, it’s that time again for students to head back into the classrooms and hit the books. For fixed-income investors, it’s business as usual as the quest for profitability in the ...
As the Turkish lira exhaled by gaining against the U.S. dollar today, the Dow Jones Industrial Average inhaled the contagion caused by Turkey's economic crisis with a loss of over 150 points as of 3:15 p.m. ET. The market pandemic felt around the globe didn't leave benchmark U.S. Treasury yields resistant to its effects as they were all knocked down across the board. "The story for this week is clearly centered on Turkey, tariffs, the dollar, and weakness in the equity market," said Kevin Giddis, head of fixed income capital markets at Raymond James.
Investment-grade corporate bonds and ETFs, such as the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD), can provide conservative fixed income investors with alternatives to cash. Temping ...
Investment-grade corporate bonds and related ETFs can provide a good mix of stability and income for investors seeking to still put money to work in an uncertain market environment. “Rather than sit idle ...
While the Turkish lira has been languishing amid geopolitical tensions with the United States, U.S. corporate bond-focused fixed-income ETFs edged higher, such as the iShares Intermediate Credit Bond ETF (CIU)--up 0.16%, iShares iBoxx $ Invmt Grade Corp Bd ETF (LQD)--up 0.13% and Vanguard Interm-Term Corp Bd ETF (VCIT) --up 0.20%. CIU tracks the investment results of the Bloomberg Barclays U.S. Intermediate Credit Bond Index. CIU focuses on investment-grade corporate debt and sovereign, supranational, local authority and non-U.S. agency bonds that are U.S. dollar-denominated and have a remaining maturity of greater than one year and less than or equal to ten years.