|Bid||0.00 x 34100|
|Ask||0.00 x 1100|
|Day's Range||61.10 - 61.15|
|52 Week Range||59.55 - 61.15|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.25|
|Expense Ratio (net)||0.07%|
Here, I will share some simple ways to cut back on the amount of risk in your investment portfolio. The relationship between stocks and bonds provides some insight as to how we can think about the stock-bond mix. The point in the upper right-hand corner represents a 100% stock portfolio and the point on the lower left a 100% bond portfolio.
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.
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.
As chances of a Fed rate hike in December are pretty high and can cause some turmoil in the markets, these ETF areas could provide cushion to investors.
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.
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.