|Bid||54.80 x 1300|
|Ask||56.05 x 1300|
|Day's Range||54.77 - 54.84|
|52 Week Range||52.75 - 55.13|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.88|
|Expense Ratio (net)||0.05%|
Each day, Benzinga takes a look back at a notable market-related moment that happened on this date. What Happened? On this day in 1997, the U.S. Treasury introduced the first Treasury Inflation-Protected ...
Since launching its first ETF in 2009, Charles Schwab Investment Management has seen rapid growth to become the fifth biggest U.S. ETF provider. Here's how.
Exchange-traded funds (ETFs) had an incredible year in 2017. A recent report by ETF.com indicates that ETFs gathered new assets totaling more than $450 billion for that year, in some part thanks to the strength of the U.S. equity space. In 2018, although ETFs are still among the hottest and most popular investment vehicles for investors across the country, the figures are likely to be somewhat less impressive.
Consumer prices in the United States grew 2.8% year over year in May 2018, above market expectations of 2.7%. It also marked the highest inflation rate since February 2012. Higher cost of gasoline and shelter led to the estimate beat.
The FOMC’s June statement was released on June 13, and the outlook for inflation remained upbeat. The highlight of the comments on inflation was the statement from FOMC Chair Jerome Powell, who said that he was not ready to declare victory on inflation. The statement indicated that on a 12-month basis, both inflation (CPI) and core inflation (which excludes food and energy) moved closer to the symmetric inflation (TIP) target, while the indicators of long-term inflation (VTIP) remained unchanged.
To begin with, the Fed is widely expected to announce an interest rate hike of 25 basis points at the end of its two-day meeting on Wednesday. Bulls and bears may debate on whether the Fed is likely to increase rates two more times after the June rate hike. During the Fed’s May meeting, the inflation (TIP) target was described as “symmetric,” suggesting that the 2% target would not be used to initiate any dramatic changes to US monetary policy.
On June 12, the US Bureau of Labor Statistics reported that US consumer prices rose 0.2% in May, adding to the 0.2% increase seen in April. Consumer prices continued to move higher, and have now exceeded the Fed’s 2% target. Core inflation (VTIP), which excludes volatile food and energy prices, rose 0.2%, taking core inflation growth over the last 12 months to 2.2%.
With interest rates on the rise, bond values, REITs and dividend-paying stocks have all been pressured lower as a means of adjusting for the prevailing interest rates of the day. It’s one reason why Treasury Inflation-Protected Securities, or TIPS for short is worth a look. Another reason is that, with the inflation outlook being largely uncertain there’s no end in sight to the frustration.
Bond ETFs are experiencing a lot of action as fixed-income investors move around billions of dollars. Over the past week, there have been a handful of exceptionally large trades that are worth mentioning, ...
As fixed-income investors looked backed into Treasury exposure, some bond investors are taking a shine to a Treasury inflation protected securities-related exchange traded fund to generate yield generation and hedge against potential inflationary risks in a growing economic environment. The Schwab U.S. TIPS (SCHP) was the most popular ETF of the past week, attracting $1.2 billion in net inflows, according to XTF data. The rush toward Treasuries and TIPS may be attributed to the sudden risk-off nature in response to Eurozone risks, namely Italy's recent election results and rising anti-establishment or anti-euro sentiment that has fueled speculation of a potential dissolution of the euro currency bloc.
The FOMC’s May meeting minutes indicated that some of its members had turned bearish on inflation (TIP). This information played a major role in changing investor’s assessment of the Fed’s plan for future rate hikes. If members feel that inflation can’t sustain above 2%, there’s the chance that they could limit the number of rate hikes going forward.
US bond market investors were relieved after the US Bureau of Labor Statistics’ April report, published May 10, indicated a lower-than-expected inflation growth rate. The latest inflation (VTIP) report indicated that core inflation increased at a slower pace of 0.1% in April, boosting hopes for a slower pace of rate hikes from the Fed. At its May meeting, the Fed stated that it would continue tightening and inflation (TDTT) would reach 2% in future months. The decline in bond yields after the disappointing jobs and inflation reports could be temporary, as inflation expectations may be fueled by higher crude prices.
On May 10, the Bureau of Labor Statistics reported that US consumer prices rose 0.2% in April. In contrast, they fell 0.1% in March. The April growth kept the uptrend in inflation (TIP) growth intact. Over the last 12 months, US inflation has grown 2.5%, a steep increase from the 1.6% growth recorded in June 2017. Core inflation (VTIP), which excludes volatile food and energy prices, rose just 0.1%, the slowest growth since November 2017. Over the last 12 months, core inflation has grown 2.1%, above the 2% target rate set by the Fed.
Longtime readers of Morningstar's research have heard us relentlessly beat the drum for funds that charge low fees. For all our manager research analysts' combing through historical portfolios, scrutinizing performance data, and grilling portfolio managers to formulate views on a fund's People and Process Pillars, there's no surer indicator that a fund has an advantage over its peers than a cheap price tag. Expenses are especially crucial to consider for fixed-income funds, because returns between bond funds tend to be more compressed.
In the May FOMC meeting, the US Federal Reserve observed that economic activity has been rising at a moderate pace. This trend was in line with the projections laid out in the summary of economic projections report released at its March meeting. In its most recent SEP release, the Fed upgraded its GDP growth outlook for 2018 by 0.2% to 2.7%, compared to the 2.5% growth outlook in December 2017 and a 2.1% forecast in September 2017.
The Bureau of Economic Analysis defines PCE (personal consumption expenditure) as the value of goods and services purchased by, or on behalf of, US residents. The Fed prefers this inflation (CPI) measure to assess price levels, as it reflects actual price increases for consumers.