|Bid||30.69 x 2200|
|Ask||0.00 x 4000|
|Day's Range||30.69 - 30.73|
|52 Week Range||29.98 - 30.79|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.24|
|Expense Ratio (net)||0.07%|
According to the latest Morningstar report on U.S. mutual fund and exchange-traded fund (ETF) fund flows for May 2019, taxable-bond inflows fell from $42.6 billion in April to $15.4 billion in May, the ...
Right now, in today's fixed income environment, it could benefit investors if they played the short game with short duration fixed income exchange-traded funds (ETFs). During times of heavy volatility like that experienced during May, short-term bonds were the apple of fixed-income investors' eyes as they longed for shorter duration debt during the market oscillations. Most investors were fleeing to the safe confines of all fixed income assets, but as the central bank is seemingly looking to either stand part or cut interest rates, short duration bonds could be the preference moving forward.
In any market environment, knowing exactly which exchange-traded funds (ETFs) to purchase is not an easy task. Today, knowing the right ETFs to buy has been made even more difficult by the recent uptick in equity market volatility caused various U.S. trade controversies.But while it is more difficult, there are still plenty of credible options to consider. Plus, it is also becoming easier to identify the funds most vulnerable to the trade wars, presenting investors with a sort of addition by subtraction scenario.In the current market climate, investors should continue emphasizing portfolio balance while looking for ETFs to buy that increase their portfolio's diversity, bolster income streams, reduce volatility and, for more tactical investors, take advantage of some recent price retrenchment.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy As They Hit 52-Week Lows With those factors in mind, here are some of the ETFs to buy over the rest of 2019. ETFs to Buy: SPDR Portfolio Short Term Corporate Bond ETF (SPSB)Expense Ratio: 0.07% per year, or $7 on a $10,000 investment.The SPDR Portfolio Short Term Corporate Bond ETF (NYSEARCA:SPSB) is a cost-effective avenue for investors looking to reduce risk while bolstering their income profiles. SPSB, which holds nearly 1,200 corporate bonds, has a yield of 3.23%, which is better than what investors get with the S&P 500 or 10-year Treasuries.With the business cycle in its latter stages and the yield curve showing signs of flattening, shorter-duration strategies with enhanced income traits could prove to be solid bets for bond investors. SPSB has an option-adjusted duration of just 1.81 years."With a constrained long end and low probability for Fed actions to move the short end, the curve will likely stay flat, residing within the 10-20 basis point range it has traveled in since the Fed went on hold and started preaching patience," said State Street in a recent note. "In fact, since January, the rolling 50-day moving average 10- to 2-year yield spread has held steady at either 16 or 17 basis points."Over 84% of SPSB's holdings are rated A or Baa. Invesco S&P 500 Low Volatility ETF (SPLV)Source: Shutterstock Expense Ratio: 0.25%With investors becoming increasingly skittish about riskier assets due to the aforementioned trade flaps, the Invesco S&P 500 Low Volatility ETF (NYSEARCA:SPLV) makes for a predictable inclusion on this list. Predictable but still potent, because this ETF to buy has recently been making a series of all-time highs.That means SPLV is accomplishing one of the primary objectives of low volatility strategies: to perform less poorly when broader markets swoon. Indeed, this ETF to buy is living up to the hype. Over the past month, SPLV is up 4.7% while the S&P 500 is up 1.6% over the same period.SPLV is sector agnostic, meaning the 100 least-volatile stocks over the past year are the fund's components, regardless of sector residence. That said, some sectors frequently top the least-volatile list, including utilities and real estate. * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% Those two groups combine for nearly 46% of SPLV's weight. That is a positive when those sectors are soaring and that they are. On June 6, 13 real estate and utilities ETFs hit record highs. ProShares S&P 500 Dividend Aristocrats ETF (NOBL)Expense Ratio: 0.35%The ProShares S&P 500 Dividend Aristocrats ETF (CBOE:NOBL) features a basket of domestic stocks that have boosted their dividends for at least 25 consecutive years and it is that type of quality trait that makes NOBL an ETF to buy and one that holds up better than traditional equity funds. That much was confirmed in May when this ProShares fund was about 100 basis points less bad than the S&P 500, confirming NOBL's status as a safe ETF to buy, relatively speaking.Due to its emphasis on dividend growth over yield, NOBL is not heavily allocated to the real estate and utilities sectors. Those groups combine for just 3.5% of the fund's weight, meaning NOBL can be paired with the aforementioned SPLV in investors' portfolios. Importantly, NOBL's strategy can be a winner over longer holding periods, too."The S&P 500 aristocrats have a five-year annual return of about 9.9%, compared with 9.8% for the S&P 500. The same performance advantage has held true for consistent mid- and small-cap growers as well," according to Barron's.Investors have added nearly $575 million to NOBL this year. This ETF to buy has a dividend yield of 2.5%, implying ample room for dividend growth going forward. Invesco S&P SmallCap Information Technology ETF (PSCT)Source: Shutterstock Expense Ratio: 0.29%The Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT) is a tactical idea for the rest of this year. In less volatile market environments, the combination of small-cap stocks and the technology sector has made PSCT one of the best ETFs to buy. That is not the case at the moment, but investors considering PSCT as an ETF to buy will get better pricing today than they would have at the start of May.After faltering last month, PSCT is about 12% below its 52-week. That puts the fund in correction territory, not a bear market. But PSCT appears to be supported around $75, giving investors a good price point for where to set stop-loss orders. * 10 Stocks to Buy That Could Be Takeover Targets PSCT's 87 holdings are engaged in computer hardware and software, internet, electronics and semiconductors and communication technologies, putting the fund front-and-center when it comes to trade war talk. Bottom line: the best thing that could happen for PSCT over the near-term would be the U.S. and China making nice on trade. IQ SP High Yield Low Volatility Bond ETF (HYLV)Source: Shutterstock Expense Ratio: 0.4%The IQ SP High Yield Low Volatility Bond ETF (NYSEARCA:HYLV) is an ETF to buy for investors looking for the yield benefits of junk bonds with a reduced volatility profile. HYLV follows the S&P U.S. High Yield Low Volatility Corporate Bond Index.That benchmark "is designed to measure the performance of U.S. high yield corporate bonds with potentially low volatility. The index is comprised of bonds from the S&P U.S. High Yield Corporate Bond Index and is a modified market value weighted index with a 3% cap on any single issuer," according to S&P Dow Jones.While default rates remain benign, a sudden erosion in economic data would likely sting the high-yield bond market, bringing increased volatility. HYLV can help investors mitigate that turbulence without sacrificing yield, as highlighted by the fund's 30-day SEC yield of 4.35%.HYLV keeps volatility to a minimum by eschewing highly speculative CCC-rated debt. Over 85% of the fund's holdings carry one of the three "BB" ratings.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy As They Hit 52-Week Lows * 4 Antitrust Tech Stocks to Keep an Eye On * 5 Gold and Silver Stocks Touching Intraday Highs Compare Brokers The post 5 ETFs to Buy for the Rest of 2019 appeared first on InvestorPlace.
As investors take an overhead view of the global fixed-income landscape, many are taking into account the changing market conditions and adapting to the changes by creating a diversified bond portfolio. Growth has weakened in most major economies and financial conditions have tightened going into 2019 as investors grew increasingly concerned about the end of the post-crisis economic expansion that has extended for a decade. Consequently, investors should expect increased near-term volatility.
As the ETF industry grows and matures, investors are gravitating toward specific areas of interest and targeted investment strategies. “I think what we are already seeing – costs matter. We continue to see that,” Susan Thompson, Head of SPDR Americans Distribution for State Street Global Investors, said at Inside ETFs.
ETF investments provide advisors and investors with an idea of currently trending global investment themes popping up in a changing market environment. On the recent webcast, ETF Flash Flows: Where Are ...
Many fixed-income investors are concerned about the Federal Reserve's tighter monetary policy with interest rate hikes during the end of a traditional economic cycle. For example, the SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB) shows a 4.22 year adjusted duration and comes with a 3.92% 30-day SEC yield. On the other hand, if investors were to move down the yield curve a little bit, the SPDR Portfolio Short Term Corporate Bond ETF (SPSB) has a 1.8 year duration and a 3.46% 30-day SEC yield.
Just like the "death cross" in stocks, the inverted yield curve is the bond market's version of the Grim Reaper when it comes to forecasting a recession. The inverted yield curve occurs when the yield for long-term debt issues are lower than those of short-term debt issues of the same grade. As stock markets were getting roiled by the tornados of volatility the last few months, the possibility of an inverted yield curve was a growing concern.
In a rising interest rate environment, fixed-income assets typically fall out of favor. However, after the recent sell-off, corporate bonds and related exchange traded funds have attracted more attention, ...
Despite the Twitter scolding from U.S. President Donald Trump, the capital markets are expecting the Federal Reserve to hike rates a fourth time for 2018. As such, fixed-income exchange-traded fund (ETF) ...
The recent volatility in U.S. equities was made evident by investor flights to the bond market with the latest BlackRock Global ETP Landscape report showing that fixed income products received the majority ...
With Christmas two weeks away, the holiday vibes remind us that now is the time of year to strengthen familial and friendly bonds, but the capital markets are also reminding us that it's a great time to fortify bonds in your portfolio. With the VIX Index surpassing its 200-day moving average since early October, fixed-income has once again become the default play as skittishness in U.S. equities are fueling an appetite for bonds. As volatility continues to rain down on the capital markets, the move to bonds has been followed by inflows into the exchange-traded fund (ETF) space for fixed income, particularly of the short duration variety. An example would be the SPDR Portfolio Short Term Corp Bd ETF (SPSB) , which seeks to provide investment results that correspond to the performance of the Bloomberg Barclays U.S. 1-3 Year Corporate Bond Index.
While short sellers in U.S. equities have an appetite for destruction brewing in the stock market, the latest volatility is also fueling an appetite for bonds as the Dow Jones Industrial Average fell over 500 points before gaining back its losses on Monday. A 507-point decline was reduced to a mild gain as of 2:30 p.m. ET in Monday's session, but those market oscillations are the types of swings that are paving the way for capital flows into fixed income. With the yield in government debt like the benchmark 10-year yield falling, it suggests the move towards safe-haven assets to escape the volatility--a trend that could also see long duration Treasury yields fall to record low levels in the 1 percent territory.
This article was originally published on ETFTrends.com. One of this year's most glaring themes among fixed income exchange traded funds is investors' preference for short duration, a theme that is benefiting ETFs such as the SPDR Portfolio Short Term Corp Bd ETF (SPSB) . SPSB seeks to provide investment results that correspond to the performance of the Bloomberg Barclays U.S. 1-3 Year Corporate Bond Index.
The Christmas season may be a time when winter climates around the globe take hold, but in the capital markets, while the snow is falling, the rates are rising. Given the current economic climate, investors ...
Among the most popular destinations this year in the world of fixed income exchange traded funds are those funds with low and ultra-low durations. The SPDR Portfolio Short Term Corporate Bond ETF (NYSE: SPSB) is one of those funds. The Federal Reserve raised interest rates three times this year and a fourth hike is widely expected to be delivered later this month.
The threat of a flattening yield curve caused the capital markets to fret over an economic slowdown, but one trader saw a $1 million opportunity in the bond market, particularly the iShares 20+ Year Treasury Bond ETF (TLT) . In addition to trade war worries, rising Treasury yields came back to spook the markets where the 3-year note exceeded the 5-year note earlier this week, bringing back the notion that an inverted yield curve could be signaling a forthcoming recession. Worries over an inverted yield curve came back into focus on Tuesday as the Dow Jones Industrial Averaged declined 799 points.
Bonds can reduce risk in an investment portfolio. This is a solid option for low-cost, efficient exposure to U.S. short-term investment-grade corporate bonds. Its conservative strategy keeps credit and interest-rate risk low and has a durable cost advantage over Morningstar Category peers.
Benchmark long-term Treasury yields rose while short-term yields fell as investors were hanging on every word of Federal Reserve Chairman Jerome Powell’s speech at the Economic Club of New York on Wednesday when Powell said that rates are “just below neutral,” signaling a less aggressive rate-hiking policy moving forward. “Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth,” said Powell. Powell noted that the economy is “near max employment, price stability” and major asset class valuations are “not far in excess,” which could mean there may be more room to run for U.S. equities.
Fixed-income bears could be leaving the bond market picnic, according to a Reuters report that said hedge funds have recently backed off their bearish beats as U.S. equities continue to march forward on shaky legs while Federal Reserve officials speak with dovish tones. The latest hedge fund moves come even though the general consensus in the capital markets is that a rate hike is slated for December, but the decision will also hinge on data, judgement and a little extra, according to Federal Reserve Vice Chairman Richard Clarida. "A monetary policy strategy must find a way to combine incoming data and a model of the economy with a healthy dose of judgment — and humility! — to formulate, and then communicate, a path for the policy rate most consistent with our policy objectives," said Clarida, as he delivered a speech to New York bankers.
The concept of of environmental, social and governance (ESG) investments may be struggling to break into the mainstream, but it may be turning a corner as demand for ESG fixed income products exceeded supply, according to new research by Cerulli Associates. The report revealed that inflows into ESG fixed-income products surpassed $11.4 billion the last two years, but a shortage of benchmark indexes that measure ESG-focused criteria makes it difficult for its inclusion in the asset class. “Cerulli research shows an increase in demand for ESG in all segments of the fixed-income market,” said André Schnurrenberger, managing director for Europe at Cerulli, in a press release.
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 and other investment vehicles that emphasized safety. After investors got washed through the October volatility cycle, that may have tamped down their risk-on sentiment and short-term debt is where investors are now flocking to after high yield fell out of favor.
As such, an emerging theme that rose out of the volatile October was a need for more short duration exposure, according to Kari Droller, Vice President of Third-Party Mutual Fund and ETF platforms at Charles Schwab. The shift to safety in short duration debt came after Charles Schwab said that during the first three quarters of 2018, investors' focus was scattered, including capital allocations into U.S. fixed income assets. "We've noted some weakness in international fixed income due to the strengthening dollar and low global interest rates," said Droller.
October 2018 has been one to forget for U.S. equities, but in a survey by the American Association of Individual Investors, it wasn't much better for bonds as exposure to fixed-income dropped to a 10-year low, reflecting the lockstep move both asset classes made during that month of extreme volatility. Things weren't much better for the S&P 500, which followed the Nasdaq into correction territory and fell by 7% in October--its worst month since September 2011. The Dow Jones Industrial Average fell 1,300 points or 5%, which hasn't happened since January 2016. Investors have been spooked by copious amounts of volatility after a decade-long bull run that has seen the growth fueled by FANG (Facebook, Amazon Netflix, Google) stocks dwindle as the technology sector fell into correction territory.
"Red October" and "Volatile October" are just a couple of monikers the past month can be aptly named after the capital markets were fueled by sell-offs. The bond market saw its fair share of doldrums as a result of the whipsawing volatility as Treasury yields reached its own highs--a boon for TMV. As bond prices were getting depressed, a movement into short duration by dogpiling into certain bond ETFs for the purposes of hedging benefitted TMV.