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☆ Investors are shifting into this type of bond fund at the fastest pace in three years
▼ + stars: | 2024-01-26 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

"Bond fund / ETF flows tend to follow returns with about a month lag. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is the top bond ETF by inflows with more than $4.5 billion month to date, according to FactSet. Another notable fund is the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) , which has brought in more than $2 billion. "People have definitely been allocating to investment grade. How fixed income investors react to expected rate cuts from the Federal Reserve is a key question in 2024.

Persons: Yuri Seliger, Bond, Seliger, Stephen Laipply, Laipply Organizations: Bank of, Corporate, Federal Locations: LQD, BlackRock

☆ Here’s where to invest $50,000 in the new year, according to the pros
▼ + stars: | 2024-01-01 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +8 min

The S & P 500 rose 24% in 2023, ending the year just shy of a record closing high. The highest S & P 500 target on the Street calls for 8.7% upside from Thursday's close. A fund with exposure to small and midcap semiconductor stocks is the SPDR S & P Semiconductor ETF (XSD) . Exposure to this space can be obtained through the SPDR S & P Health Care Equipment ETF (XHE) . For these investors, Bailey likes Berkshire Hathaway , calling it a counter-cyclical sitting on a ton of cash.

Persons: Larry Adam, Raymond James, Robert Kaplan, Steven Wieting, Wieting, there's, Mike Bailey, — Bailey, Bailey, They're, Berkshire Hathaway, Eli Lilly, they're, Jack Ablin, Ablin, Rowe Price Organizations: Nasdaq, Dow Jones Industrial, CNBC Pro's, Survey, National Association for Business Economics, Dallas Federal, CNBC, Bank of America, Fed, CNBC Pro, Citi Global Wealth, Nvidia, Meta, Microsoft, P Semiconductor, P Health Care, FBB Capital Partners, Corporate, Aggregate Bond, Berkshire, Essex Property Trust, Federal Realty Trust, Rowe Price Group Locations: Essex

☆ Here's how BlackRock's Rick Rieder is navigating the bond market sell-off in his outperforming ETF
▼ + stars: | 2023-10-08 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +3 min

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

☆ Top money managers are warning of pain ahead for the US economy. Here are 6 areas where they're investing right now to prepare.
▼ + stars: | 2023-09-29 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

"There is a subset that simply cannot do that," she said of paying down credit card debt going forward as rates rise. "In those tails and subsets I think you're going to have really unusual delinquencies, and just horrible recovery rates." You're going to see defaults increase." Delaney also emphasized being defensive, and said he likes corporate bonds, but those with floating rates, meaning they move with the market rate. The iShares 10-20 Year Treasury Bond ETF (TLH) is one way to gain exposure to long-term government bonds.

Persons: Dawn Fitzpatrick, Katie Koch, haven't, it's, Mark Delaney, Suni Harford, I'd, Brad Gerstner, Jerome Powell, Volcker, Koch, —, We're, Rick Rieder, he's, Delaney, Fitzpatrick Organizations: CNBC's, Alpha, Federal Reserve, Soros Fund Management, TCW, UBS, Management, BlackRock, JPMorgan, Corporate, Treasury Bond ETF, Vanguard Energy, DB Oil Fund Locations: Europe, Saudi Arabia

☆ Test is underway to see how low markets can go
▼ + stars: | 2023-08-07 | by ( Bob Pisani | ) www.cnbc.com time to read: +2 min

Right now, the S & P 500 is only 2.4% off its closing high on July 31. You'd think the stock market run would kill the big inflows into money market funds that happened in the first half of the year, but you'd be wrong. Money market inflows reaccelerated last week: $21 billion worth of inflows were added, according to Goldman Sachs. U.S. money market fund assets hit $6.7 trillion, the highest level in more than 13 years. There have been renewed inflows into energy, which is on a tear due to tighter oil supplies, and the equal-weight S & P 500 ( RSP ), all signs that the "broadening out" story is still alive.

Persons: Fitch, Sam Stovall, Jonathan Krinsky, Gold, You'd, Goldman Sachs, It's Organizations: Nasdaq

☆ Investors are buying this ETF as a bet that the stock market rally will broaden out
▼ + stars: | 2023-06-23 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

The fund puts an equal amount of money into each stock in the S & P 500 and is rebalanced quarterly, diluting the effect of the biggest companies. Through Thursday, the RSP was up about 4.6% in June compared with 4.5% for the SPDR S & P 500 ETF Trust (SPY) . "Despite what many consider the market's limited participation, the A/D index for the S & P has reached an all-time high [recently]. Here is the full list of top five ETFs by fund flows over the past week, according to FactSet. Similarly, the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) brought in more than $400 million over the past week.

Persons: it's, Wellington, Frank Gretz Organizations: Nvidia, Microsoft, RSP, Trust, Wellington Shields, Corporate

☆ Investors are shifting into high-yield ETFs with a potential Fed pause on the horizon
▼ + stars: | 2023-06-09 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) , brought in nearly $1.2 billion in cash over the past week, according to FactSet. Investors bought into the iShares Broad USD High Yield Corporate Bond ETF (USHY) . The interest in high yield debt comes ahead of next week's Federal Reserve meeting. "High yield's kind of in a sweet spot right now. The spread between high yield and safer debt could widen in coming months if the labor market continues to weaken, but the high yield market appears to be of better quality than in previous economic cycles, Silapachai said.

Persons: It's, Komson Silapachai, Silapachai Organizations: Investors, Sage Advisory, P Regional, Corporate Locations: Austin , Texas

☆ How ETFs are expediting bond market modernization
▼ + stars: | 2023-03-08 | by ( Kevin Schmidt | ) www.cnbc.com time to read: +2 min

Despite equities having long transitioned to electronic trading, over-the-counter trading remains common in the bond market. Bond ETFs are changing that. "Bond ETFs are 20 years old today, and they trade the same way as some of the technologies in fixed income." Roughly a decade after equity ETFs were first introduced, the first four bond funds launched in July 2002 — the iShares 1-3 Year Treasury Bond Fund (SHY) , the iShares 7-10 Year Treasury Bond Fund (IEF) , the iShares 20+ Year Treasury Bond Fund (TLT) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) . "And it just sounds really familiar to the way ETFs had grown with the equity markets."

☆ Where the action is: LYFT, CHPT, JNK, LQD & FXI
▼ + stars: | 2022-12-30 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhere the action is: LYFT, CHPT, JNK, LQD & FXIA look at where the options action is heading into the new year. With CNBC's Melissa Lee and the Options Action traders, Brian Stutland, Mike Khouw and Guy Adami.

Nov 21 (Reuters) - Investors are increasingly eyeing U.S. corporate credit offering attractive valuations and yields after steep declines in 2022, fund managers told the Reuters Global Markets Forum (GMF). "We are at the beginning of a rotation as investors come back into credit. iShares iBoxx Investment Grade Corporate Bond ETF (LQD.P) and iShares High Yield Corporate Bond ETF (HYG.P) are on track for quarterly gains of more than 3% in the fourth quarter after falling 20% and 14% respectively this year. "If we're at this turning point then the entry level you get by buying investment-grade credit in the (United) States looks really attractive." The jump in bond yields, which move inversely to prices, has also made corporate credit more attractive to investors looking for income after years of low interest rates, Ramji said.

☆ Bank of America shares one area of the bond market set to deliver 13% returns in 2023 — and lays out the drivers of its 'big reversal'
▼ + stars: | 2022-11-17 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

In a note to clients on Monday, Seliger said investment-grade corporate credit in particular is in for a big year. Investment-grade corporate bonds are those rated Baa by Moody's and BBB by S&P and Fitch because they're deemed to have low default risk. "This base case scenario implies a +12.9% total return and +379bps excess return for IG corporate bonds in 2023. Bank of AmericaBank of America's November survey of bond investors showed that both high yield bond investors and investment-grade bond investors expect BBB-rated bonds to outperform most relative to Treasurys in 2023. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) are two ways to gain exposure to investment-grade corporate bonds.

☆ 'What we're seeing today looks a lot like post-internet bubble': Guggenheim CIO Scott Minerd told us why stocks will likely fall another 19% — and shared 2 investments that look among the most attract
▼ + stars: | 2022-11-05 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Amid the tough backdrop, Minerd shared two areas where he thinks investors can find return. "That's a much better place to go with your money than the stock market," Minerd said. "If you look at defense stocks year-to-date, they're generally high. And so I think there's a lot more upside in defense stocks, both relatively in the short run and in the next five years." Funds like the SPDR S&P Aerospace & Defense ETF (XAR) and the iShares U.S. Aerospace & Defense ETF (ITA) offer diversified exposure to defense stocks.

☆ The CIO of the world's largest wealth manager shares 9 places to put your money in the near-term as a sustained rally in stocks looks 'unlikely' and uncertainty remains high
▼ + stars: | 2022-10-15 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

Mark Haefele said this week that he doesn't see a sustained rally in stocks. Stocks went on a face-ripping rally on Thursday, with the S&P 500 rising more than 4.2% after market open. In stocks, Haefele said these include defensive — or recession-proof — areas of the market like the consumer staples and healthcare sectors. He also said he likes UK value stocks, and value stocks around the world, with inflation and rates still elevated. Finally in stocks, Haefele is still bullish on the energy sector because of OPEC's recently-announced production cuts and what they should do to keep crude prices higher.

☆ U.S. corporate bond ETFs plunge in global debt market rout
▼ + stars: | 2022-10-11 | by ( Davide Barbuscia | ) www.reuters.com time to read: +2 min

NEW YORK, Oct 11 (Reuters) - Some U.S. corporate bond indicators have hit or are approaching new lows this week as a rout in the UK bond market and U.S. inflation worries slammed global debt valuations. BlackRock’s iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD.P) - a major exchange-traded fund tracking the U.S. investment-grade corporate bond market - fell to a low of $101.05 on Tuesday, its lowest since 2009. Its high-yield counterpart, BlackRock’s iShares iBoxx $ High Yield Corporate Bond ETF (HYG.P) fell to $70.92 on Monday, just a few cents away from hitting a new low since March 2020. Register now for FREE unlimited access to Reuters.com RegisterLong-dated U.S. treasury yields, which move inversely to prices and tend to sway other debt markets, on Tuesday shot to multi-year highs, with a sharp sell-off in the UK bond market contributing to widespread market volatility. The Bank of England said it would buy up to 5 billion pounds of inflation-linked debt per day, starting on Tuesday, until the end of this week in an effort to stem the bond market collapse.

☆ Fed rate hikes have made some corporate bonds very attractive. How to profit from it
▼ + stars: | 2022-09-27 | by ( Patti Domm | In | ) www.cnbc.com time to read: +5 min

As stocks sink and interest rates rise, investors are getting more excited about corporate bonds than they've been in a generation. One side effect of Federal Reserve tightening policy is it has made interest rates go up everywhere — including in the corporate bond market. The way we choose to access corporate bonds is through a highly diversified low cost index fund and part of the reason for that is when it comes to corporate bonds, there's more difficulty with them than with government bonds," he said. Playing through funds A fund that tracks short-term corporates is the SPSB, SPDR Portfolio Short Term Corporate Bond ETF . There is also the Vanguard Short-Term Corporate Bond ETF VCSH , which tracks a corporate bond index, is off 8.5% this year.

☆ Financial markets don't like the U.K. stimulus plan because they fear inflation above all else now
▼ + stars: | 2022-09-23 | by ( Bob Pisani | ) www.cnbc.com time to read: +2 min

The U.K. has unveiled a large stimulus program, the biggest tax cut in half a century and will pay for it by substantially raising the debt level. Wait, don't markets love stimulus programs? Stimulus programs might even be welcomed for stoking some inflation in those circumstances. The stimulus program and the attendant need to borrow was immediately seen as inflationary, hardly what the market wants to hear. If stimulus programs are no longer greeted as a positive, what can they do to help out weak economies?

☆ What traders are thinking about before the big Fed decision Wednesday afternoon
▼ + stars: | 2022-09-21 | by ( Bob Pisani | ) www.cnbc.com time to read: +2 min

The S & P 500 is about 70 points below where it was at the close of the last Federal Reserve meeting on July 27. The last several Fed meetings have seen the S & P close up on the announcement day, but there's no pattern after that. After the May 4 meeting, the S & P dropped three days in a row, and after the March 16 meeting, a rally continued for several days. Corporate bond funds are also at new lows, including the Vanguard Short-Term Corporate Bond ETF (VCSH) and the iShares Investment Grade Corporate Bond ETF (LQD) . Remarkably, there have not been outflows from these funds, likely because they have strong institutional support and broad bond funds like these tend to be "sticky."

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