|Bid||25.09 x 4000|
|Ask||25.11 x 2900|
|Day's Range||25.10 - 25.11|
|52 Week Range||25.05 - 25.15|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-0.02|
|Expense Ratio (net)||0.15%|
While the Federal Reserve could be readying to lower interest rates later this year, the utility of floating rate notes (FRNs) and exchange traded funds, such as the WisdomTree Bloomberg Floating Rate ...
After generating paltry income for more than a decade, Treasuries make sense again for investors seeking riskless gains
While the Federal Reserve has eased off the pedal on interest rate hikes, investors are still looking into alternative bond ETF strategies, like those that track floating rate notes, ahead any further tightening.
As ETF investors carefully look over the current market environment, many are considering equity and fixed-income strategies that could help diversify and enhance an investment portfolio in a more trying environment. On the recent webcast, Macro Strategies: Navigating Choppy Market Waters, Kevin Flanagan, Senior Fixed Income Strategist for WisdomTree, argued that supportive elements that previously bolstered the economy and U.S. markets are beginning to fade so investors should hold back expectations. While we continue to see the economy improve, with strong GDP, stable inflation and robust employment with rising wages, the economy is moving toward the later stages of the traditional business cycle and investors should take steps to adapt to the changes.
Investors are testing the market waters and considering how they will position for the year ahead before diving in head first. On the upcoming webcast, Macro Strategies: Navigating Choppy Market Waters, ...
With the bear having clawed out a huge piece of stock market profits lately, investors have been pouring money into short-term bond ETFs.
The outcome of Tuesday's midterm elections did not provide many surprises when, as expected, the Democrats gained control of the House of Representatives and the Republicans maintained control of the Senate. Bond markets reacted as expected and with electoral politics in the rear view mirror, at least for now, fixed income market observers have concerns to focus on. “Unlike the 2016 U.S. election, the fixed income arena was not greeted with any surprises this time around, so based upon the initial reaction, it appears as if the bond market has moved on quickly,” said WisdomTree in a recent note.
Last week, the Federal Reserve raised interest rates for the third time this year, prompting fixed income market participants to speculate a fourth rate hike will arrive in December and that the Fed will again raise rates multiple times next year. Floating rate notes (FRNs) have been popular destinations this year for fixed income investors amid Fed tightening. One of the fastest-growing exchange traded funds this year in the FRN category is the WisdomTree Bloomberg Floating Rate Treasury Fund (USFR) .
Investors should be careful when navigating the current environment and consider some ETF investment vehicles that are designed to outperform when interest rates rise. Overall, we can anticipate further strengthening in the economy, which will lead to a tighter monetary policy out of the Fed. For instance, the government recently revealed the U.S. economy expanded at a 4.1% rate, its best quarterly performance since 2014. Flanagan warned that the U.S. budget deficit has widened and the Treasury Department has been increasing supply of U.S. Treasuries - Treasury supply for the fiscal year 2018 is expected to be in the $1 trillion to $1.5 trillion range, compared to the $519 billion issued for the fiscal year 2017.
With the Fed upgrading the U.S. economy’s performance from “solid” to “strong,” what does this mean for more rate hikes this year? On the upcoming webcast Thursday, Sept. 20, Fight the Fed’s Rising Rates ...
Floating rate notes (FRNs) and the related floating rate ETFs are receiving renewed attention this year as fixed income investors seek alternatives to traditional government bonds at a time when the Federal Reserve is increasing borrowing costs. One of the fastest-growing exchange traded funds this year in the FRN category is the WisdomTree Bloomberg Floating Rate Treasury Fund (USFR) . USFR, which debuted in February 2014, follows the Bloomberg U.S. Treasury Floating Rate Bond Index.
The former is recession proof, while the latter always seems able to find a market by constantly reinventing its drug portfolio, making them a couple of the best income-producing assets the market has to offer. Not every income investment has to be a familiar name, however. In fact, sometimes the very best income investments end up being the unfamiliar, almost goofy stocks many investors may have never even heard of.