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☆ Carnage in the bond market again with benchmark ETF down 10% on year to lowest since 2011
▼ + stars: | 2023-09-26 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +5 min

Treasury yields are spiking to levels not seen in over 15 years, causing sell-offs in many of the market's biggest bond funds. The iShares 20+ Year Treasury Bond ETF (TLT) closed at $89.18 on Monday, which was its lowest close since Feb. 10, 2011, according to FactSet. The Fed's target interest rate is already above 5%, as are short-term Treasury yields. But the long-term decline in bond yields began roughly two decades before that. That trend may finally have reached its turning point, Jim Grant, founder of Grant's Interest Rate Observer, said Tuesday on CNBC's " Squawk Box ."

Persons: Bruno Braizinha, Braizinha, Goldman Sachs, Cecilia Mariotti, Mariotti, Ajay Rajadhyaksha, Jonathan Krinsky, Jim Grant, Grant, BTIG's Krinsky Organizations: Treasury Bond ETF, iShares, Aggregate Bond, Treasury, Bank of America, Barclays, Federal

☆ Inverted U.S. yields lure investors into short-term bonds
▼ + stars: | 2023-09-25 | by ( Patturaja Murugaboopathy | ) www.reuters.com time to read: +4 min

One-year Treasury note yields are about a percentage point higher than those on 10-year bonds. That has meant global investors can avoid the relatively less liquid, longer-tenure bonds just for the sake of extra yield and premium. LSEG Lipper data shows U.S. short-term bond funds have outperformed this year, delivering a gain of 2.2% in price terms compared with an average 2.1% dip in long-term bond funds. Most analysts expect short-term bond funds to continue to lure more money in the months ahead. "We are anchoring portfolios with the higher yielding short-term bonds.

Persons: Dado Ruvic, Adam Coons, SPDR, MATURITIES, Matt Dmytryszyn, Jeff Klingelhofer, Klingelhofer, Winthrop's Coons, Patturaja Murugaboopathy, Gaurav Dogra, Vidya Ranganathan Organizations: REUTERS, Morningstar, Treasury, Reuters, Winthrop Capital Management, Federal Reserve, SPDR Bloomberg, Thornburg Investment Management, Thomson Locations: Telemus, Bengaluru

☆ Investors are jumping into this bond ETF that has protection against rising rates and yields over 8%
▼ + stars: | 2023-09-22 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

That appears to be pushing investors into an exchange-traded fund with some built-in cushion against higher rates. The fund buys and holds loans made by banks and other financial institutions, which often have floating interest rates. For comparison, the iShares 3-7 Year Treasury Bond ETF (IEI) has a total return of about -0.2%. The Vanguard Total Corporate Bond ETF (VTC) has a total return of less than 1% year to date. If the Fed were to cut rates, the BKLN would likely underperform and see its payouts decrease.

Persons: isn't Organizations: SEC, Treasury Bond ETF, Corporate Bond, Treasury

☆ This new dividend ETF offers investors income at a rock-bottom fee
▼ + stars: | 2023-09-13 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

Investors who are hungry for income have a new exchange-traded fund option on the market that comes with a low price tag. The SPDR Portfolio S & P Sector Neutral Dividend ETF (SPDG) launched this week and holds stocks in the S & P 1500 that have maintained or increased their dividends for at least seven consecutive years. For example, the SPDR S & P Dividend ETF (SDY) has an expense ratio of 0.35%, as does the ProShares S & P 500 Dividend Aristocrats ETF (NOBL) . It's even a bit lower than the 0.06% of the Vanguard High Dividend Yield Index ETF (VYM) . The fund's index, the S & P Sector-Neutral High Yield Dividend Aristocrats Index, has a dividend yield of 3.13%, according to State Street.

Persons: Matthew Bartolini, Bartolini Organizations: Vanguard, SPDR, SPDR Americas Research, Street Global Advisors, P, SEC Locations: financials, SPDR Americas

☆ These safe assets offer yields exceeding 5%. Why investors shouldn’t lean too heavily on them
▼ + stars: | 2023-09-11 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Fed's rate-hiking campaign gave investors an opportunity they haven't seen in years: Risk-free returns are finally interesting. Six-month Treasurys are yielding 5.5%, while a bevy of money market funds are offering 7-day yields exceeding 5%, according to Crane Data . However, at some point, rates will come down — and investors hiding in short-term, high-yielding assets could find themselves with no place to go. That means investors could be left with few places to go for attractive yields in a lower rate environment as their shorter-term assets mature — known as reinvestment risk. The benefit of laddering when rates are high is that the longer-dated bonds will have already locked in the higher yields.

Persons: There's, we've, Crystal Cox, Matthew McKay, McKay, Jerrod Pearce, Pearce, Wealthspire's Cox Organizations: Federal Reserve, Data, Wealthspire Advisors, Briaud Financial, CFP, Creative Planning

☆ Global money market funds attract biggest weekly inflows in three months
▼ + stars: | 2023-09-08 | by ( ) www.reuters.com time to read: +2 min

Investors poured about $57.38 billion into global money market funds in their most significant weekly net purchases since June 7, LSEG data showed. By region, U.S., European and Asian money market funds drew $32.18 billion, 20.75 billion and $1.64 billion, respectively, in inflows. Reuters Graphics Reuters GraphicsOn the other hand, global bond funds drew $9.24 billion worth of inflows, the biggest amount in nine weeks. Among commodities, precious metal funds saw $518 million worth of net selling, the 15th weekly outflow in a row, but energy funds received inflows for a second week, worth about $101 million. Data for 28,201 emerging market funds showed equities suffered outflows for a fourth successive week, valuing $1.81 billion on a net basis.

Persons: Gaurav Dogra, Patturaja, Susan Fenton Organizations: Reuters Graphics Reuters, Investors, Thomson Locations: China, Europe, Britain, U.S, Bengaluru

☆ US equity funds see outflows for sixth week in a row
▼ + stars: | 2023-09-08 | by ( ) www.reuters.com time to read: +2 min

According to LSEG data, investors withdrew a net $5.96 billion out of U.S. equity funds during the week, compared with about $4.42 billion worth net withdrawn the previous week. Investors offloaded about $3.96 billion worth of equity large-cap funds compared with about $110 million worth of net selling in the previous week. Small- mid-, and multi-cap funds also witnessed $1.56 billion, $365 million and $4 million worth of net selling, respectively. U.S. bond funds witnessed outflows for a fourth successive week, with about $622 million in net selling. Government bond funds also saw about $260 million worth of outflows, the first in five weeks.

Persons: Andrew Kelly, Gaurav Dogra, Patturaja, Emelia Sithole Organizations: New York Stock Exchange, REUTERS, Investors, Treasury, Reuters Graphics Reuters, Money, Thomson, & $ Locations: New York City, U.S, China, Europe, Bengaluru

☆ A 33-year-old who built up a 6-figure net worth through 'lazy investing' says even though 2022 was a 'a decidedly bad year for investors,' he didn't change his investment strategy. Here's what his por
▼ + stars: | 2023-08-20 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

After paying off $42,000 worth of debt, he got serious about investing and built up a six-figure net worth through "lazy investing" while saving for his first home simultaneously. He reacted to the 2022 downturn similarly to how he did when the stock market crashed in 2020: apathetically. These are Vanguard, Fidelity, and Schwab's total stock market index funds. Another component of the lazy investing strategy is periodic rebalancing. It probably shouldn't be any more than four times a year because then the 'lazy investing' turns a bit too hands on."

Persons: Jesse Cramer, Berkshire Hathaway, Cramer, haven't, I'm, hasn't, they're, Cramer rebalances, it's, Berkshire Hathaway Cramer doesn't, Warren Buffett, Charlie Munger, Hathaway, I'd Organizations: Berkshire, Vanguard, Fidelity Locations: Berkshire

☆ Investors are jumping back into short-term bond funds as rates rise
▼ + stars: | 2023-08-18 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

The recent jump in market interest rates may have caught some ETF investors off guard, and they are now shifting back into short-term bond funds that can better withstand rising yields. Bond yields move in the opposite direction of price, and long-term bonds see their prices hit harder when rates rise. As a result, investors are shifting into short-term bond funds. The following short-term bond ETFs were in the top 10 for net inflows over the past week, according to FactSet. The upward move for bond yields has been particularly acute in the long end of the yield curve.

Persons: Claudio Irigoyen, Fitch, Irigoyen, TLT Organizations: Federal, Treasury, Treasury Bond ETF, Bloomberg, Bank of America Locations: U.S, Japan

Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). If you're worried about a recession, there are only two things you need: an emergency fund and diversified investments. The biggest danger to a young person isn't a risky portfolio or potential market drop, but avoiding investing. These "funds of funds" automatically choose a blend of investments based on your age — the younger you are, the riskier the investments (more stocks). At the end of the day, the "biggest danger" to a young person isn't a risky portfolio or potential market drop, he said, but avoiding investing all together.

Persons: Ramit Sethi, Sethi, Rich, you'll, Read Organizations: Service Locations: Wall, Silicon, arm's

☆ US equity funds record biggest weekly outflow in seven weeks
▼ + stars: | 2023-08-11 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Andrew KellyAug 11 (Reuters) - U.S. equity funds saw heavy outflows in the seven days to Aug. 9 amid investor caution ahead of the U.S. inflation data and concerns over credit rating downgrades in the banking sector. By sector, materials, financials and tech saw net sales of $891 million, $554 million and $524 million, respectively. Reuters Graphics Reuters GraphicsMeanwhile, U.S. money market funds and government bond funds attracted $40.88 billion and $4.48 billion, respectively, as investors hunted for safety. U.S. general domestic taxable fixed income and short/intermediate investment-grade funds received about $800 million each in inflows. On the other hand, high yield and loan participation funds saw net sales of $565 million and $419 million, respectively.

Persons: Andrew Kelly, Moody's, Gaurav Dogra, Mark Potter Organizations: New York Stock Exchange, REUTERS, Reuters Graphics Reuters, Wall, Nasdaq, Thomson Locations: New York City, U.S, Patturaja, Bengaluru

☆ Global money market funds draw biggest weekly inflow in 4-1/2 months
▼ + stars: | 2023-08-11 | by ( ) www.reuters.com time to read: +2 min

Investors ploughed $73.17 billion into money market funds in their biggest weekly net purchase since March 22, data from Refinitiv Lipper showed. U.S. money market funds attracted a net $40.88 billion in inflows while in Europe and Asia net inflows stood at $23.4 billion and $13.15 billion, respectively. Higher-risk equity funds suffered $11.71 billion worth of net selling, the biggest weekly outflow since June 21. Global corporate bond funds drew about $1.16 billion and government bond funds a net $2.71 billion, the biggest amount since July 12. Meanwhile, bond funds faced their biggest weekly net outflow in nine months at a net $1.74 billion.

Persons: Dado Ruvic, Lipper, Gaurav Dogra, Patturaja, Kirsten Donovan Organizations: REUTERS, Reuters Graphics, Federal Reserve, Reuters Graphics Reuters, Global, Thomson Locations: Saudi, China, Europe, Asia, Bengaluru

☆ This bond ETF is a bet on ‘higher for longer’ and uses options to find extra income
▼ + stars: | 2023-08-11 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

A growing number of investors appear to be trying to squeeze additional cash from long-term bonds with the iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) . "Popular Treasury ETFs, such as [iShares 7-10 Year Treasury Bond ETF ] and [ iShares 20+ Year Treasury Bond ETF ], could lose another 4-8% if yields spike by the end of September," Woodard said. The TLTW presents a strategy to thread the needle and offset declines in bond prices with income from selling call options. The fund works by buying the iShares 20+ Year Treasury Bond ETF (TLT) and then selling call options with strike prices roughly 2% above the market price of the underlying fund. The TLTW also comes with a higher cost than vanilla Treasury funds.

Persons: Bond, …, Jared Woodard, Woodard, iShares, Steve Laipply, TLT, Laipply Organizations: Federal, Bank of America, Treasury, ETF, Treasury Bond ETF, BlackRock, SEC

☆ US money market funds draw biggest inflow in four months
▼ + stars: | 2023-08-04 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Rick Wilking/File PhotoAug 4 (Reuters) - U.S. money market funds saw robust demand in the seven days to Aug. 2 as investors favoured safer assets on concerns over a U.S. credit rating downgrade and economic reports signalling a still-tight labour market. Investors secured U.S. money market funds worth about $58.56 billion in their biggest weekly net buying since March 29, data from Refinitiv Lipper showed. Reuters Graphics Reuters GraphicsU.S. equity funds drew $133 million worth of inflows, compared with about $2.57 billion worth of net purchases a week ago. U.S. equity growth funds saw net outflows worth $3.48 billion, the biggest since June 7, but value funds had $891 million worth of net buying. Reuters Graphics Reuters GraphicsU.S. bond funds witnessed about $1 billion worth of outflows, the first weekly net selling since June 28.

Persons: Rick Wilking, Lipper, baring industrials, Gaurav Dogra, Shilpi Majumdar Organizations: REUTERS, Investors, Reuters Graphics Reuters Graphics, Reuters Graphics Reuters, Thomson Locations: Westminster , Colorado, U.S, Patturaja, Bengaluru

☆ Global money market funds see largest inflows since March amid US downgrade, economic woes
▼ + stars: | 2023-08-04 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Jason Lee/Illustration/File PhotoAug 4 (Reuters) - Global money market funds attracted massive inflows in the week to Aug. 2 as investors sought safer assets amid a U.S. credit downgrade and weak economic data from the euro zone and China. Investors poured in a net $67.52 billion into global money market funds during the week, marking the biggest weekly net purchase since March 22, according to Refinitiv Lipper data. The U.S. and the European money market funds drew $58.56 billion and $14.35 billion worth of inflows, respectively, while Asia faced a second weekly outflow, amounting to $360 million. Riskier global equity funds still received inflows worth about $4.45 billion in a second straight week of net purchases. Data for 24,127 emerging market funds showed that investors withdrew about $487 million from bond funds after eight straight weeks of net purchases.

Persons: Jason Lee, Fitch, Gaurav Dogra, Patturaja, Shilpi Majumdar Organizations: Hong, REUTERS, Investors, Reuters Graphics Reuters, AAA, Global, Equity, Thomson Locations: Hong Kong, China, United States, Europe, U.S, Asia, Bengaluru

☆ Investors are shifting their bond bets into this type of ETF
▼ + stars: | 2023-08-02 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

Investors appear to be growing more comfortable with the path for interest rates and are shifting their fixed income bets accordingly. The list of the most popular bond funds by inflows in recent weeks is dominated by large passive funds. The iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Intermediate-Term Treasury ETF (VGIT) have both been two of the 10 most popular ETFs of any type over the past month, according to FactSet's flow data. The iShares 3-7 year Treasury Bond ETF (IEI) and the Vanguard Intermediate-Term Bond ETF (BIV) have also seen sizable inflows recently. Broad bond funds will often have longer duration than short-term funds, even if there is no reference to time frame on the label.

Persons: Scott Chronert, Fitch, — CNBC's Michael Bloom Organizations: Citi, Federal Reserve, Treasury Bond ETF, Treasury, Bond ETF, Bond Locations: outflows

☆ How Bond Funds Have Fared During the Fed’s Rate Hikes
▼ + stars: | 2023-07-29 | by ( Matt Grossman | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/how-bond-funds-have-fared-during-the-feds-rate-hikes-49a9c2d1

Persons: Dow Jones

☆ Global money market funds draw big weekly inflows on investor caution
▼ + stars: | 2023-07-28 | by ( ) www.reuters.com time to read: +2 min

According to Refinitiv Lipper data, global money market funds drew investments worth a net $38.74 billion in the week ended July 26, the biggest amount since July 5. Reuters Graphics Reuters GraphicsThe U.S. and European money market funds attracted purchases worth $24.62 billion and $11.84 billion, respectively, on a net basis. Global equity funds drew about $1.3 billion worth of inflows after witnessing a weekly outflow of $2.2 billion the previous week. They also disposed of about $34 million worth of precious metal funds in their ninth weekly net selling in a row. Meanwhile, data for 24,115 emerging market funds showed bond funds received $1.14 billion, the biggest amount in three weeks, while equity funds had a third weekly net purchase worth about $157 million.

Persons: Kai Pfaffenbach, Gaurav Dogra, Patturaja, Varun Organizations: European Central Bank, REUTERS, Federal Reserve, Bank of Japan, Reuters Graphics Reuters, Global, Corporate, Thomson Locations: Frankfurt, Germany, Bengaluru

☆ What Is an Expense Ratio?
▼ + stars: | 2023-07-24 | by ( E. Napoletano | ) www.wsj.com time to read: +8 min

The easiest way to think of the expense ratio is the fee you pay to the portfolio manager of your mutual fund. When you invest in an ETF or mutual fund, the fund’s prospectus will state its expense ratio. How expense ratios impact investment returnsBefore you can look at how expense ratios impact your investment returns, it helps to understand what an average expense ratio looks like. While the average active stock fund’s expense ratio was 0.66% in 2022, the average bond fund charged just 0.44%, according to ICI. Remember: It should be easy to find the fund’s expense ratio.

Persons: it’s, Chloe Wohlforth, Russell, Warren Buffett, Peter Lynch —, Merrill Lynch, Morgan Stanley, Justin McCurdy, “, ”, you’re, McCurdy Organizations: Investment Company Institute, ICI, BuySide, SEC, Morningstar Locations: —, New York, U.S, Angeles

☆ Global equity funds see first weekly outflow in four weeks
▼ + stars: | 2023-07-21 | by ( ) www.reuters.com time to read: +2 min

July 21 (Reuters) - Global equity funds witnessed their first weekly outflow in four weeks in the week to July 19, reflecting concerns over slower growth in China and caution ahead of the Federal Reserve's policy meeting next week. According to Refinitiv Lipper data, global equity funds observed a net $2.67 billion worth of net selling in the week ended July 19, booking their first weekly outflow since June 21. Investors withdrew $3.04 billion from U.S. equity funds while purchasing Asian and European equity funds to the tune of $609 million and $336 million, respectively. Government and corporate bond funds attracted $627 million and $724 million worth of inflows, respectively. Meanwhile, data for 24,134 emerging market funds showed equity funds received $1.1 billion, the biggest weekly inflow since May 3, while bond funds obtained about $568 million, marking a third straight weekly inflow.

Persons: Gaurav Dogra, Patturaja, David Holmes Organizations: Global, Reuters Graphics Reuters, U.S . Commerce Department, Investors, Government, Thomson Locations: China, Bengaluru

☆ YOUR MONEY How to get high rates to work for you
▼ + stars: | 2023-07-17 | by ( Chris Taylor | ) www.reuters.com time to read: +4 min

July 17 (Reuters) - There is no doubt that higher interest rates are hard on a many people – especially if you are taking out a loan on a home or a car, or are struggling to catch up with credit-card debt. But for some, steep interest rates are not actually bad news. In fact, 38% of people say they have benefited from higher interest rates during the past year, according to a new survey from Allianz Life Insurance. “That’s the dichotomy: Higher interest rates are both crushing some people and benefiting others at the same time,” says Kelly LaVigne, vice president of Consumer Insights for Allianz Life. That means if you have some savings set aside, it is time to think about how to flip this negative of higher interest rates into a positive.

Persons: “, ”, Kelly LaVigne, Amy Arnott, Morningstar, Arnott, Rowe, Baird, Jeremy Keil, Keil, George Gagliardi, Lauren Young, Aurora Ellis Organizations: Allianz Life Insurance, Consumer, Allianz Life, U.S . Federal Reserve, Morningstar, FDIC, Bills, CIT Bank, BMO Alto, Citizens, Financial, Thomson Locations: New Berlin , Wisconsin, Toronto, Lexington , Massachusetts

☆ Fixed income investing is heating up. Here are a couple stocks to play it, according to Bank of America
▼ + stars: | 2023-07-13 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

A higher interest rate environment has made fixed income exciting, and Bank of America has a couple of stock plays on the theme. The Federal Reserve's series of 10 rate hikes has boosted yields on Treasurys and money market funds. Bank of America analyst Craig Siegenthaler says fixed income reallocation will continue to be a theme, and that could lift the shares of certain asset managers and brokers. "We believe [ BlackRock and Tradeweb ] are the two best ways to invest in fixed income with both retirees and pension plans raising allocations to traditional fixed income over the next 12 months," he said in a Tuesday report. He added investors should "expect sizable flows into fixed income, money markets and private credit over the next 12 months and look for bond trading volumes to increase."

Persons: Craig Siegenthaler, Tradeweb, Siegenthaler, – CNBC's Michael Bloom Organizations: Bank of America, Investment Company Institute . Bank of America, brokerages, LPL Locations: BlackRock

☆ Watch now: ETF Edge on buffered and bond funds, plus other 2023 trends
▼ + stars: | 2023-07-10 | by ( Bob Pisani | ) www.cnbc.com time to read: 1 min

[The stream is slated to start at 1:00 PM ET. Please refresh the page if you do not see a player above at that time.] CNBC's ETF Edge is dedicated to the fastest-growing trend in investing right now: ETFs. Every Monday, Bob Pisani will be joined by a panel of top market participants to offer educational and actionable advice to help you build your best portfolio.

Persons: Bob Pisani Organizations: Edge

☆ New ETFs give income investors different ways to play volatile bond yields in the second half
▼ + stars: | 2023-07-07 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

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

☆ Bond yields and volatility are spiking. These ETFs should benefit
▼ + stars: | 2023-07-06 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +3 min

Wall Street's glide toward higher stocks and falling bond yields was jolted into reverse Thursday, as surprisingly strong economic data sent bond yields soaring and stocks tumbling . For example, the iPath Series B S & P 500 VIX Short-Term Futures ETN (VXX) and the ProShares VIX Short-Term Futures ETF (VIXY) serve as bets that investor expectations of volatility will go up from here. The UVXY is designed to provide 1.5-times returns of the VIX short-term futures and was up about 8% in midday trading. Rising yields Profiting from rate spikes through bond funds can be a bit tricky. The biggest fund in that space is the iShares Floating Rate Bond ETF (FLOT) , which was little changed on Thursday.

Persons: PFIX, FLOT Organizations: Treasury, Dow Jones, US Treasury

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