|Bid||50.48 x 1000|
|Ask||50.49 x 1000|
|Day's Range||50.44 - 50.50|
|52 Week Range||49.68 - 50.77|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||3.24%|
|Beta (5Y Monthly)||0.29|
|Expense Ratio (net)||0.06%|
Investors embracing short-term Treasury ETFs, including the iShares Short Treasury Bond ETF (NASDAQ: SHV) and iShares 1-3 Year Treasury Bond ETF (NYSEArca: SHY), typically get reduced interest rate risk, ...
A version of this article was published in the April 2019 issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestor by visiting the website. Systematic risk is like gravity.
Recent commentary from the Federal Reserve indicates the central bank may not boost interest rates this year. In fact, bets are rising that the Fed may even lower interest rates late this year, confirming investors' bias toward longer-dated bonds and the related exchange traded funds in 2019. ETFs such as the Schwab Short-Term U.S. Treasury ETF (SCHO) can help investors boost fixed income exposure, generate income and smooth out some of the volatility that comes along with sizable equity positions.
Amid a more sanguine outlook for U.S. interest rates this year, investors are revisiting longer-dated bonds and the corresponding exchange traded funds. The $5.5 billion SCHO targets the Bloomberg Barclays U.S. Treasury 1-3 Year Index and holds 85 bonds with a weighted average maturity of 1.99 years. “Indexing Treasuries in this way is a sound approach for exposure to a specific portion of the yield curve,” said Morningstar in a recent note.
Ultrasafe investments, like short-term Treasuries, are an effective way to diversify an all-stock portfolio as they tend to hold up well during periods of market distress. Treasuries are backed by the full faith and credit of the U.S. government, so they don't carry the credit risk that is embedded in corporate bonds. Schwab Short-Term U.S. Treasury ETF SCHO provides great exposure to these stable assets.
Despite the momentum in the riskier equity market, exchange traded fund investors continued to favor conservative bets and yield-generating plays. Among the most popular ETF plays of the past week, six ...
U.S. two-year treasury note yield briefly dropped below 2.4% on Jan 3, reaching parity with the federal funds effective rate for the first time since 2008.
Several of this year's top asset-gathering fixed income exchange traded funds are of the low or ultra-low duration varieties, indicating investors' preference for bonds that are less sensitive to rising interest rates. The IQ Short Duration Enhanced Core Bond U.S ETF (NYSE: SDAG) debuted Tuesday as the second new ETF introduced by IndexIQ over the past week. SDAG follows the IQ Short Duration Enhanced Core Bond U.S. Index, a benchmark comprised of other ETFs.