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Search resuls for: "BINC"


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That shakiness around when the cuts are coming, as well as the expectation that rates could remain higher for longer creates an opportunity for active managers. Rick Rieder, BlackRock's global chief investment officer of fixed income, told CNBC in a phone interview. Indeed, core bond funds were among the winners in the 2008 crisis. For starters, they should think about the role they want a given bond fund to play within their portfolio: Is it to offset equity risk or to boost returns? "You're not investing in bond funds to shoot the lights out and build your wealth pile," said Morningstar's Jacobson.
Persons: Rick Rieder, Rieder, Eric Jacobson, Morningstar, John Croke ,, Morningstar's Jacobson, Jaime Quinones, they're, Quinones Organizations: Federal Reserve, Barclays, Bank of America, Citigroup, CNBC, Bloomberg, SEC, Morningstar, Vanguard, Stockade Wealth Management, Mutual Locations: Marlboro , N.J
Investors with cash on the sidelines may want to start moving some of that money into bonds, according to a new report from BlackRock. The bond market has seen some volatility amid the uncertainty around interest rates and the Federal Reserve's monetary policy. Bond yields move inversely to prices. US10Y YTD mountain 10-year Treasury yields Yields are at levels not seen in 20 years, he pointed out. Aggregate Bond ETF year to date The iShares Core Total USD Bond Market ETF (IUSB) is also a passively managed, broad bond market fund which adds exposure to potentially higher-yielding names.
Persons: Steve Laipply, shouldn't, Laipply Organizations: Federal, Treasury, BlackRock, Fed, Core, Aggregate Bond, Bloomberg U.S, SEC, Aggregate, Bond Locations: BlackRock
Investors have been raking in income thanks to attractive yields in the U.S. bond market. Investing in global bond funds Individual investors can add exposure to foreign bonds through global bond funds. There are hedged funds, which hedge foreign currency exposure back to the U.S. dollar and therefore reduce currency risk. "It's good to be diversified because foreign bond exposure is a massive part of the global bond markets," Mulach said. Here are Morningstar's top picks for global bond exposure: The Pimco strategies keep the bulk of their non-U.S. currency exposure hedged back to the U.S. dollar.
Persons: Rick Rieder, Rieder, Collin Martin, Martin, It's, Mike Mulach, Mulach, Rick Rieder's, Darla Mercado Organizations: BlackRock, SEC, Investment, U.S ., European, European Central Bank, Federal, Schwab Center, Financial Research, Morningstar, U.S, Strategic Global Bond Fund, Investor, Morningstar . Dodge, Cox's Global Bond Fund Locations: U.S, Europe, BlackRock, Mexico, Brazil
Conflict in the Middle East escalated over the weekend as Iran launched drones and missiles at Israel, and traders braced for a response. Investors have already been on edge as of late amid climbing oil prices and recent economic data that shows inflation is remaining sticky. Rockier times could be ahead, too, noted Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute. Tax-loss harvesting involves selling losers in your taxable account and using these losses to offset realized gains within your portfolio. Extending duration involves adding exposure to bonds with greater price sensitivity to changes in rates.
Persons: Paul Christopher, Christopher, rebalancing, Gargi Pal Chaudhuri Organizations: Wells, Wells Fargo Investment Institute, Information Technology, Communications Services, BlackRock, Treasury Bond ETF Locations: Fresh, Iran, Israel, Wells Fargo, BlackRock
IEI has a 30-day SEC yield of 4.26% and carries an expense ratio of 0.15%. BINC, which is actively managed, has a 30-day SEC yield of 5.6% and a net expense ratio of 0.4%. Investors can use ETFs to tackle that space: Vanguard's Intermediate-Term Corporate Bond ETF (VCIT) has a 30-day SEC yield of 5.33%. There's also the iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) , offering a 30-day SEC yield of 5.4%. Hunting dividend payers Higher rates have overshadowed opportunities among dividend-paying stocks, which look less attractive to income investors who can find risk-free yields easily.
Persons: it's, Michael Carbone, Carbone, Gargi Chaudhuri, Collin Martin, There's, Michael Clarfeld Organizations: Dow Jones, Traders, Federal, Treasury Bond ETF, SEC, Schwab Center, Financial Research, Corporate Locations: Chelmsford , Massachusetts, BlackRock, ClearBridge
To guard against stubborn inflation and higher-for-longer interest rates, investors should focus on quality companies with high pricing power and adjust their duration risk in bonds, according to Wall Street strategists and portfolio managers. Pricing power Companies with high pricing power tend to outperform when inflation is elevated because they have the ability to defend their profit margins by passing along higher costs to their end market customers. "In equities, you should prefer companies that have pricing power, i.e. "When inflation is the predominant risk in markets, correlations between stocks and traditional bonds tend to be high. BlackRock's iShares strategy team recently argued that investors should take advantage of spikes in bond yields while they can and reinvest their cash.
Persons: Stocks, Brad Conger, Sonu Varghese, Jason Pride, Pride, Rick Rieder Organizations: Dow Jones, Treasury, Street, Callaghan, Co, Big Tech, Carson Group, Securities, U.S ., Glenmede Trust Locations: Hirtle, BlackRock
"We believe the recent back up in rates is probably the last best opportunity to extend duration," wrote Gargi Pal Chaudhuri, chief investment and portfolio strategist, Americas, at BlackRock. Generally speaking, the value of a bond goes up as interest rates go down, with longer-dated bonds seeing the biggest gains. While bond funds have been seeing inflows this year, there are still plenty of investors with excess cash in short-term accounts. Different funds that offer that type of exposure include the iShares 3-7 Year Treasury Bond ETF (IEI) , the SPDR Portfolio Intermediate Term Treasury ETF (SPTI) and the Vanguard Intermediate-Term Treasury ETF (VGIT) . Investors shouldn't go overboard with adding duration, because the long-term bonds on the market carry extra risk, Akullian said.
Persons: BlackRock's, Gargi Pal Chaudhuri, Kristy Akullian, It's, Akullian, Investors shouldn't Organizations: Treasury, Federal, Investment Company Institute, BlackRock, CNBC, Treasury Bond ETF, Research, Investors Locations: Americas, BlackRock, US10Y
Today's higher rates on CDs aren't going to last , however. For investors contending with maturing CDs, that means they're running out of places to stash their idle cash and still generate an attractive yield. "The issue is reinvestment risk," said Michael Carbone, certified financial planner and financial advisor at Eppolito Financial Strategies in Chelmsford, Massachusetts. That's because once the Fed begins cutting rates, fixed income with longer-dated maturities will allow investors to lock in those higher yields. An opportunity to diversify fixed income In addition to adding exposure to longer-dated bonds, advisors have also been diversifying across different classes of fixed income.
Persons: Wells Fargo, Banks, Jerome Powell, Michael Carbone, Catherine Valega, Valega, Carbone, Josh Nelson, he's Organizations: Green Bee, Keystone Financial Services, MBS Locations: Chelmsford , Massachusetts, Winchester , Massachusetts, Loveland , Colorado, BlackRock
In a sea of income-generating exchange-traded funds, BlackRock 's actively managed Flexible Income ETF (BINC) seeks to stand out with a multisector approach that balances high quality and high yield. "The way we built this portfolio is marrying high yield, investment-grade credit, agency mortgages and securitized [products]," Rieder said in an interview. Rieder said he's investing more in European high yield these days because of the strong U.S. dollar. "That is really attractive — and European high yield is cheaper than U.S.," he said. In U.S. high yield, single-B-rated debt is the most attractive, the investor said.
Persons: Rick Rieder, Rieder, BINC, it's, they're, We're, Indonesia — Organizations: BlackRock, SEC, Morningstar, Federal, Agency Locations: U.S, European, Mexico, Brazil, Indonesia
BlackRock Chief Investment Officer of Fixed Income Rick Rieder said investors underestimate actively managed fixed income exchange-traded funds. He told CNBC's "ETF Edge" this week that one of his firm's newest fixed income funds, the BlackRock Flexible Income ETF (BINC), has outperformed peers because its allocations are based on current market opportunity. "The beauty of this active ETF is we can move around and take advantage of where the opportunity is," said Rieder, who manages roughly $2.6 trillion in fixed income assets. "I think active ETFs in fixed income, people underestimate." U.S. high yield credit follows at nearly 17%, then U.S. investment grade credit at approximately 14% of total allocations.
Persons: Rick Rieder, CNBC's, Rieder, BINC, Organizations: BlackRock, Bond Locations: BlackRock, Brazil, Mexico, Europe
BlackRock global fixed income CIO Rick Rieder said Friday that this year's bond market volatility has created opportunities to buy high quality yields on the cheap. The result is his new fund outperforming some of the biggest bond ETFs during the most recent sell-off. Aggregate Bond ETF (AGG) and 2.2% for the Vanguard Total Bond Market ETF (BND) , the two biggest bond ETFs. BINC 1M mountain BlackRock's BINC has held up better than major bond ETFs over the past month. "I think what people underestimate is the long end of the bond market, the 30-year Treasury, is about the same volatility as the stock market," he said.
Persons: Rick Rieder, Rieder, We've Organizations: BlackRock, Rieder, Aggregate Bond, Vanguard, Bond Market, CNBC, Treasury, Corporate Bond Fund, Fed, AAA, Mortgage, SEC Locations: BlackRock, Mexico, Brazil, Japan, iShares, United States, U.S
The Pimco Multisector Bond Active ETF (PYLD) launched in June, giving investors a way to follow one of the biggest names in fixed income during the volatile bond market. As the fixed income ETF market matures, major asset managers are trying their hand at multisector bond funds. Recent launches include Capital Group's U.S. Multisector Income ETF (CGMS) and BlackRock's Flexible Income ETF (BINC) , which is co-managed by Rick Rieder , the firm's chief investment officer for global fixed income. For financial advisors or investors who want to make investment decisions themselves, there are more targeted bond funds available. "There's a pretty long runway for investors to increase their allocation to fixed income.
Persons: Rick Rieder, Dan Ivascyn, Sonali Pier, D.J, Tierney, you've, Schwab, Schwab's Tierney Organizations: Treasury, Capital, Multisector, Pimco, CNBC, Schwab Asset Management, Fed Locations: Capital Group's, U.S, iShares
But for investors worried that more Fed rate hikes in the coming months could tip the economy into recession, fixed income might be a more attractive bet. "Municipal bond issuers appear well poised to weather a possible recession in 2023/24. Bank of America has the equivalent of a buy rating on several municipal bond ETFs, including JPMorgan Ultra-Short Municipal Income ETF (JMST) and the iShares National Muni Bond ETF (MUB) . Some large funds that could fit that description include the iShares 3-7 Year Treasury Bond ETF (IEI) , the Schwab Intermediate-Term US Treasury ETF (SCHR) and the Vanguard Intermediate-Term Corporate Bond ETF (VCIT). The actively managed Flexible Income ETF (BINC) launched in May and has about $76 million in assets so far, according to FactSet.
Persons: Michelle Cluver, Andrew Slimmon, Slimmon, Russell, Jared Woodard, Woodard, Cluver, Rick Rieder Organizations: Federal, Global, Morgan Stanley Investment Management, RSP, Nasdaq, Bank of America, JPMorgan Ultra, Muni Bond ETF, Treasury Bond ETF, Treasury, BlackRock
BlackRock's Flexible Income ETF (BINC) began trading Tuesday and is managed by Rick Rieder, the firm's chief investment officer of global fixed income. The actively managed fund has a net expense ratio of 0.40%. "For the average investor, it's pretty hard to differentiate in fixed income. The fund holds fixed income from multiple sectors, including high-yield bonds, European investment-grade debt and emerging market debt. The BlackRock Large Cap Value ETF (BLCV) is managed by Tony DeSpirito, the firm's global chief investment officer of fundamental equities.
Persons: Rick Rieder, Rieder, Rachel Aguirre, Tony DeSpirito Organizations: BlackRock, Federal Reserve Locations: U.S
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