Bonds: Treasuries
BondBloxx Investment Management recently announced the launch of eight duration-specific U.S. Treasury ETFs. The funds, which trade on the NYSE Arca, offer investors a more precise, lower-cost way to get exposure to U.S. Treasury Securities. The ETFs track a series of indices developed by Bloomberg Index Services that include duration-constrained subsets of U.S. Treasury bonds with over $300 billion outstanding. The funds add to BondBloxx’s existing eleven products launched this year, including seven industry sector-specific high yield bond ETFs, three ratings-specific high yield bond ETFs, and one short-duration emerging market bond ETF. The new ETFs include the BondBloxx Bloomberg Six Month Target Duration US Treasury ETF (XHLF), the BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE), the BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO), the BondBloxx Bloomberg Three Year Target Duration US Treasury ETF (XTRE), the BondBloxx Bloomberg Five Year Target Duration US Treasury ETF (XFIV), the BondBloxx Bloomberg Seven Year Target Duration US Treasury ETF (XSVN), the BondBloxx Bloomberg Ten Year Target Duration US Treasury ETF (XTEN), and the BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF (XTWY).
Finsum:BondBloxx adds to its existing suite of ETFs with eight duration-specific U.S. Treasury ETFs giving investors lower cost exposure to U.S. Treasury Securities.
Like easy? Launched earlier in the month, sole and institutional investors will experience an easier process to trade the most current benchmark U.S. Treasuries thanks to a new series of exchanged traded funds, according to reuters.com. It sheds on the maturing ETFs within the fixed income terrain.
While treasuries, of course, are among the bevy of the world’s most liquid securities, particularly for investors who need to frequently roll them over to sustain the maturity, trading them can be plodding.
"This gives (investors) a tool to say, we really want to focus on how we execute our investment strategy, as opposed to how effectively we trade Treasury bonds," said F/m President Alex Morris.
The new ETFs, which will eventually include more maturities, as well as options, will make it easier for people managing bond portfolios in a precise way, said Dave Nadig, director of research at ETF Flows.
"I put this in the category of sharp tools in the drawer," he said. "For most investors, I don't think it's relevant. For investors that need this product, it's a godsend."
Meantime, it’s largely been coming up roses for fixed income ETFs. Their ranks have swelled, piquing the interest of fresh investors, according to thestreet.com.
And talk about a high ceiling. Last month, the ETF industry hit a worldwide high of $862 billion in assets under management, shattering records. As of July 31 in this country, 706 ETFs from 22 providers drew $582 billion.
U.S. Treasury yields rose on Monday with the benchmark 10-year yield hitting a five-week peak of 3.039%, while the 30-year yield climbed to a seven-week high of 3.268%. Yields rose as investors await a Federal Reserve gathering occurring later this week in Jackson Hole, Wyoming. The Fed is widely expected to reinforce its commitment to tackling inflation. Fed Chair Jerome Powell is scheduled to speak Friday morning at the Jackson Hole symposium. Last week's Fed minutes appeared to suggest that the Fed is on course to continue to increase interest rates with the central bank seeing "little evidence" that inflation was easing. The auction for shorter-dated coupons this week also added to the sell-off in Treasuries, pushing their yields higher. Traders typically sell Treasuries before an auction and then buy them back at a lower price.
Finsum: Treasuries hit multi-week highs on Monday as investors await Fed Chair Jerome Powell’s speech on Friday morning at the Jackson Hole symposium.
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Volatility can be a maddening beast. Sure, you can hope all well be relatively calm on the western front this month, and The Federal Reserve, the European Central Bank and the Bank of Japan won’t break bread until next month, pointed out marctomarket.com.
Meantime, the volatility of the S&P, the VIX, hovers at three month lows while the equivalent in the Treasury market’s off drastically from an early July peak.
A cocktail of burgeoning prices and moderating economies are giving investors a run for their money, the site continued.
Some economists insist the U.S. is sitting in a recession, hearty U.S. growth in jobs and with an unemployment rate at 3.6%, cyclical lows, aside. The market, in all its adamance, figures that prior to year’s end, the target of the Fed funds – currently 2.50% -- will bounce an additional 100 bp.
Inflation and the Fed’s policy are hanging is as some of the primary drivers of market and investor sentiment Advisors and investors upon which should train their focus in the year’s second half, Wisdom Tree believes, according to finance.yahoo.com, in an article was published originally on ETFTrends.com.
A $4 billion investment advisor based in Washington, D.C. recently announced the launch of a new suite of US Treasury ETFs that will make it easier for investors to access the US Treasury market. F/m Investments' new US Benchmark Series will allow investors to own each “Benchmark” US Treasury in a single-security ETF. Each fund will hold the most current US Treasury security that corresponds to its stated tenor. The initial three ETFs are the US Treasury 10 Year ETF (UTEN), the US Treasury 2 Year ETF (UTWO), and the US Treasury 3 Month Bill ETF (TBIL). While Treasuries are very liquid securities, they can be hard to trade. This is especially true for investors who must roll them over frequently to maintain maturity. The new ETFs will hold each maturity's most current Treasuries.
Finsum: A new suite of single bond ETFs will provide investors access to a maturity’s most current treasury.
Not all REITs are created equally, and many have been pumping out dividends and will come to a screeching halt as the Fed begins to hike interest rates. However, three REITs are in a good position to show dividend resilience to the interest rate risk. The First is Medical Properties Trust which is a healthcare REIT that has three developing investments to create flows for dividends. VICI Properties is up next which is acquiring MGM Growth Properties and has a very low debt to EBITDA ratio which will help in securing dividend payouts. Finally, a long-term strategy is the 1st Street Office which has a consistently high dividend and shares are tied to its NAV.
Finsum: Rate hikes are slow to affect real estate compared to other assets, but aggressive hikes could move quicker.