|Bid||50.91 x 3000|
|Ask||50.92 x 42300|
|Day's Range||50.89 - 50.92|
|52 Week Range||50.02 - 51.04|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-0.02|
|Expense Ratio (net)||0.20%|
Floating rate notes (FRNs) and the related exchange traded funds received plenty of attention last year as the Federal Reserve hiked interest rates four times, but the asset class is still useful even with the Fed mulling a rate cut or two this year. Floating rate notes, like the name suggests, have a floating interest rate. Specifically, the notes’ have a so-called reset period with interest rates tied to a benchmark, such as the Fed funds, LIBOR, prime rate or U.S. Treasury bill rate.
Below is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term 'buy on the dip' opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
DoubleLine Capital CEO Jeffrey Gundlach, otherwise known as "The Bond King" in the capital markets space, said the S&P 500 will hit new lows as a bear market puts a stranglehold on the index. "I'm pretty sure this is a bear market," Gundlach told CNBC. In the last three months, its performance--down 10.31 percent-- speaks to the mass of sell-offs occurring in U.S. equities as rising interest rates and trade wars have sparked a flight from stocks and into safe-haven assets like bonds.
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 ...
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.
Since 2016, the Federal Reserve has hiked rates seven times and if Goldman Sachs' forecast of five more rate hikes to come is correct, fixed-income investors might want to bring their flotation devices starting in December--not the apparatus that aids in keeping oneself above water, but fixed-income investments that feature a floating rate component. “The Fed is unlikely to conclude the hiking cycle unless it is reassured that the labor market overshoot doesn’t grow much further,” said Goldman Sachs analysts Jan Hatzius, Alec Phillips and David Mericle, states. Rather than invest directly in the bonds themselves, investors can opt for exchange-trade funds that invest in debt issues that feature floating rate notes like the SPDR Blmbg Barclays Inv Grd Flt Rt ETF (FLRN) and the iShares Floating Rate Bond ETF (FLOT) .
A falling local currency in conjunction with rising government debt yields are bringing South African bonds to the brink of junk status as the likelihood of a credit rating downgrade increased as the country's lawmakers expect wider budget deficits and lower growth forecasts. Additionally, Finance Minister Tito Mboweni said government debt will peak within two years and be higher than initially expected, while state revenue languishes. This news won't do South Africa any favors once it reaches the ears of credit rating companies like Moody’s Investors Service.
Rising interest rates may reach a level that matches U.S. President Donald Trump’s relationship with the media. The president’s disdain for rate hikes won’t gain any sympathy from the Federal Reserve as ...
Federal Reserve Chairman Jerome Powell confirmed the overall market consensus on Wednesday that interest rates would rise with the announcement that the federal funds rate would elevate by 25 basis points to 2.25. In the bond markets, activity for high-yield, senior loan and floating rate-focused ETFs ticked higher as investors scrambled to position their portfolios to take advantage of the higher interest rates. "In fixed income, high-yield (which has been quiet of late) saw some increased activity and was mostly better for sale," noted Brian Gilman of ETF Sales & Trading at Virtu Financial.
A raging bull market paired with data from the Department of Commerce showing that gross domestic product rose 4.2% in the second quarter gives Federal Reserve Chairman Jerome Powell ample reason for investors to get swept away by a wave of rising interest rates in the central bank's forthcoming monetary policy decisions. With no signs of slowing, it appears that a healthy flow of rising rates is in order, according to Boston Federal Reserve President Eric Rosengren. With a monetary policy meeting slated for later this month, Rosengren also forecasts that the current federal funds rate will float between a range of 2.5% to 3%. “Gradually increasing over the course of this next year makes sense,” Rosengren told CNBC in an interview.