|Bid||50.04 x 36100|
|Ask||50.05 x 900|
|Day's Range||50.04 - 50.06|
|52 Week Range||49.42 - 50.25|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.24|
|Expense Ratio (net)||0.06%|
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.
Interest rates have steadily pushed higher in recent months, and the Federal Reserve has signaled its intent to raise interest rates at least two more times before the end of the year to head off an overheating economy with high inflation. While rising interest rates can drag on bond fund returns, they have less of an impact on bond funds with shorter durations. "From post-crisis through 2017, investors in fixed income have had to move out along the curve to generate some yield, extending some duration risk, or taking a dip in quality," Alfonzo Bruno, a research analyst for fixed-income strategies with Morningstar, told CNBC.
Fixed-income investors can also target the lower end of the yield curve through focused exchange traded fund plays as well. According to the latest Commodity Futures Trading Commission data, short-term traders turned to a bullish wager on two-year notes in the week ended May 22, Bloomberg reports. The shift in strategy came days after yields on the maturity, the most vulnerable benchmark note when it comes to expectations for Federal Reserve policy, hit its the highest in a decade.
The Conference Board uses credit conditions in the economy as one of the components of the leading economic index (or LEI) economic model. Changes to six financial market instruments are modeled to construct this credit index. ...
Rising interest rates can hurt investors' fixed-income portfolios. In this article, I will examine the case of PowerShares Senior Loan Portfolio BKLN , which has been a popular choice for investors looking to lessen the risk of rising rates. It is also perhaps the poster child for the futility of investors' efforts to stay a step ahead of the Fed. I will also explore other options from the menu of fixed-income exchange-traded funds, and beyond, that might help investors better manage interest-rate risk in their portfolios.
The Conference Board uses the credit conditions in the economy as one of the constituents of the Leading Economic Index (or LEI) economic model. This credit index is constructed by modeling changes to six financial market instruments. The changes to this index help us understand the state of credit conditions in the economy. ...