The SPDR S&P 500 ETF Trust experienced an outstanding $18.1 billion in net inflows in May, the greatest flow performance since December 2021, when the fund received $25.6 billion, according to Koyfin data. The ETF is the world's biggest with approximately $400 billion in assets under management.
A good ETF strategy will depend on your investment goals, risk tolerance, and time horizon. Index-based strategy: This strategy involves investing in ETFs that track a specific index, such as the S&P 500 or the Nasdaq 100. Sector-based strategy: This strategy involves investing in ETFs that track a specific sector, such as technology, healthcare, or energy.
Since the start of the regional banking crisis in the United States, $1.2 billion has flowed into the SPDR Gold Trust ETF, a gold-backed ETF that invests in physical metal bars and is managed by World Gold Trust Services, LLC. GLD's price spiked to a one-year high on Monday to as much as $183.84 per share.
As the Federal Reserve hiked its policy rate by over four percentage points in 2022 to tackle rising inflation, the U.S. Treasury market registered a record annual loss. The U.S. bond market index declined 12.5% during the year, the most in its history, reported Bloomberg.
As the Federal Reserve hiked its policy rate by over four percentage points in 2022 to tackle rising inflation, the U.S. Treasury market registered a record annual loss during the year. What Happened: The U.S. bond market index declined 12.5% during the year, the most in its history, reported Bloomberg.
Money is flooding back into bonds this year after the challenging performance of last year. For those looking for income potential in bonds, the NEOS Enhanced Income Aggregate Bond ETF (BNDI B) currently offers noteworthy total returns.
The NEOS income-seeking ETF suite offers income opportunities within core asset classes. The funds offer familiar risk profiles for advisors and investors while also optimizing the tax efficiency of the income earned in core portfolio allocations.
Todd Rosenbluth, VettaFi head of research: Not only is this a timely topic because this might be the last Fed rate hike for a while, but because advisors are directly telling VettaFi, or indirectly indicating with their actions on our platforms, that things are different. This week, we had a webcast and asked advisors, “What changes are you making in your fixed income allocations for clients?” The most popular choice, with 44% of the responses, was extending duration/increasing credit quality. In contrast, just 30% were shortening duration/increasing credit quality. Most others were making no changes. Advisors are more willing to take on rate risk, assuming the Fed is pausing and maybe even cutting rates in the year’s second half.
According to our Explorer data tool, we also are seeing stronger engagement for intermediate-term and long-term Treasuries on our platforms and less engagement for ultra-short Treasury ETFs. Examples of intermediate or long-term ETFs include the Vanguard Intermediate-Term Treasury ETF (VGIT A) and the iShares 20+ Year Treasury Bond ETF (TLT B+).
For folks that want to take on a little credit risk with investment grade intermediate term — the Vanguard Intermediate-Term Bond ETF (BIV A) or the iShares Intermediate Government/Credit Bond ETF (GVI A-) are a couple of examples. But before I go too deep into ETFs, Jen, can you help us understand if the inflationary picture or the jobs market is showing sufficient signs of a slowdown that the Fed should be pausing?
Jennifer Nash, economic and market research analyst at VettaFi: This week’s latest jobs market info shows a cooling labor market, with March JOLTS job opening numbers falling to nearly a two-year low. Currently, there are 1.6 jobs available per unemployed worker, a number that has dropped from the 2:1 ratio seen over the past year. However, the numbers are still historically high but at least heading back down. Additionally, yesterday’s ADP employment report showed that annual pay has slowed down, which is consistent with inflationary pressures cooling. I think tomorrow’s more in-depth employment report will be a very big indicator — it currently forecasted that 180K jobs were added last month, which, if correct (or lower), would be the smallest monthly gain since December 2020, so it is definitely a sign of a cooling labor market amidst the raising of rates.
Dave Nadig, financial futurist: One nuance on the jobs data is that it’s really weird right now. Middle America (non-coastal, not middle class) has extreme labor tightness. Any breathing room in the national data has actually come almost exclusively from big cities, technology, mass retailers, etc. So we have this weird mix of tight labor in some places and cooling labor inflation in others. Reading the tea leaves on labor prints is not a super easy week-to-week right now.
Rosenbluth: Thanks Dave, and thanks Jen; good to see you at the water cooler too. When the Fed funds are at a 16-year high, we need many VettaFi Voices to help advisors and asset managers understand what this means for one another.
Powell seemed to be indicating that Fed was more likely to pause rate hikes, but his comments suggested that rate hikes the market expects are not in his and the FOMC mindset.
Nadig: So the headline is the headline: 10th consecutive rate increase. 5.25% puts it at a 16-year high. It’s basically the 1980s all over again. And, of course, this was entirely expected. The only question going into yesterday was what the guidance would be, and you really need to use track changes even to tell:
The Federal Reserve has enacted its tenth consecutive interest rate hike while signaling that a pause for hikes is possible looking ahead to June’s meeting. In an environment of stable rates, bonds could continue to flourish, and will likely experience increased flows as more advisors and investors shift some of their equity allocations to bonds ahead of a recession and the NEOS Enhanced Income Aggregate Bond ETF (BNDI A-) is worth consideration for income within bonds.
Bull vs. Bear is a weekly feature where the VettaFi writers’ room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs. Bear, Karrie Gordon and Nick Peters-Golden debated the long-term investing case for gold ETFs. Have the yellow metal’s fundamentals fundamentally changed?
The aggressive, unprecedented Fed rate hiking regime of the last year has altered the investing landscape that was so dominant in the last decade. In that environment, advisors and investors had to go further out on the risk curve to generate meaningful income. In a market full of income-generating funds, the NEOS lineup is noteworthy for its tax-efficient income within core portfolio allocations.
The grim economic outlook for the U.S. this year has taken a heavy toll on equities and corporate earnings estimates, resulting in the value of holding stocks over bonds hitting lows not seen since 2007. While the equity outlook continues to face challenges from looming potential recession and high inflation, advisors should consider the opportunities happening right now in bonds, and the income potential with the NEOS Enhanced Income Aggregate Bond ETF (BNDI A-).
Do you seek safe-haven investments? You’re not alone, as commodity and bond ETFs are on the rise. As of this writing, gold is trading at over $2,000 per ounce. The news comes amid a weakening dollar and the latest ADP National Employment Report showing fewer hiring than expected in March, suggesting a cooling labor market.
This week, the VettaFi Voices gathered around the water cooler to talk about fixed income. With so many different options in the “40” side of portfolios that range from CLOs to bank loans, and advisors looking for the best options in the world of debt and bonds, the Voices dig into the areas they see as overlooked in fixed income right now.
Here is a look at ETFs that currently offer attractive short selling opportunities.
The ETFs included in this list are rated as sell candidates for two reasons. First, each of these funds is deemed to be in a downtrend based on the fact that its 50-day moving average is below 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 above its 20-day moving average, thereby offering a near-term ‘sell on the pop’ opportunity given the longer-term downtrend 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 ETF Database premium content, sign up for a free 14-day trial to ETF Database Pro.
On the most recent episode of ETF Prime, VettaFi’s Todd Rosenbluth, head of research, discussed the three big research trends happening currently on the VettaFi platform. Tuttle Capital’s and CIO, Matt Tuttle, shed light on the firm’s two Cramer ETFs, and Matt Hougan, CIO at Bitwise, closed out talking bitcoin placement in portfolios and their newest ETF launched.
This year, let alone a few days in mid-March, is a good reminder of the role bonds and bond ETFs can play within a portfolio. Yes, there has been uncertainty as to whether the Federal Reserve will further raise interest rates in the coming days as it balances the risk of higher rates on the banking system and the broader economy with persistent inflation and job growth. However, a closer look at the leading stock and bond ETF’s total returns are telling and might make you rethink your asset allocation.
Turmoil in the banking sector is likely to elicit a slowing of interest rate hikes by the Fed at next week’s meeting according to markets. If the Fed is forced to slow or halt its interest rate hiking regime, bonds could be a winner looking ahead this year as rates stabilize.
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Commentary
May ETF Flows Favor Recent Winners from Divergent Stock Market
BY Ryan Jackson, Morningstar - 06/01/2023BNDI Has Better Total Returns Within Bonds YTD
ETF Database - 05/23/2023Money is flooding back into bonds this year after the challenging performance of last year. For those looking for income potential in bonds, the NEOS Enhanced Income Aggregate Bond ETF (BNDI B) currently offers noteworthy total returns.
NEOS Upgrades Your Core Allocations for Income
ETF Database - 05/19/2023The NEOS income-seeking ETF suite offers income opportunities within core asset classes. The funds offer familiar risk profiles for advisors and investors while also optimizing the tax efficiency of the income earned in core portfolio allocations.
VettaFi Voices On: The Last 25 Point Fed Hike(?)
ETF Database - 05/05/2023Todd Rosenbluth, VettaFi head of research: Not only is this a timely topic because this might be the last Fed rate hike for a while, but because advisors are directly telling VettaFi, or indirectly indicating with their actions on our platforms, that things are different. This week, we had a webcast and asked advisors, “What changes are you making in your fixed income allocations for clients?” The most popular choice, with 44% of the responses, was extending duration/increasing credit quality. In contrast, just 30% were shortening duration/increasing credit quality. Most others were making no changes. Advisors are more willing to take on rate risk, assuming the Fed is pausing and maybe even cutting rates in the year’s second half. According to our Explorer data tool, we also are seeing stronger engagement for intermediate-term and long-term Treasuries on our platforms and less engagement for ultra-short Treasury ETFs. Examples of intermediate or long-term ETFs include the Vanguard Intermediate-Term Treasury ETF (VGIT A) and the iShares 20+ Year Treasury Bond ETF (TLT B+). For folks that want to take on a little credit risk with investment grade intermediate term — the Vanguard Intermediate-Term Bond ETF (BIV A) or the iShares Intermediate Government/Credit Bond ETF (GVI A-) are a couple of examples. But before I go too deep into ETFs, Jen, can you help us understand if the inflationary picture or the jobs market is showing sufficient signs of a slowdown that the Fed should be pausing? Jennifer Nash, economic and market research analyst at VettaFi: This week’s latest jobs market info shows a cooling labor market, with March JOLTS job opening numbers falling to nearly a two-year low. Currently, there are 1.6 jobs available per unemployed worker, a number that has dropped from the 2:1 ratio seen over the past year. However, the numbers are still historically high but at least heading back down. Additionally, yesterday’s ADP employment report showed that annual pay has slowed down, which is consistent with inflationary pressures cooling. I think tomorrow’s more in-depth employment report will be a very big indicator — it currently forecasted that 180K jobs were added last month, which, if correct (or lower), would be the smallest monthly gain since December 2020, so it is definitely a sign of a cooling labor market amidst the raising of rates. Dave Nadig, financial futurist: One nuance on the jobs data is that it’s really weird right now. Middle America (non-coastal, not middle class) has extreme labor tightness. Any breathing room in the national data has actually come almost exclusively from big cities, technology, mass retailers, etc. So we have this weird mix of tight labor in some places and cooling labor inflation in others. Reading the tea leaves on labor prints is not a super easy week-to-week right now. Rosenbluth: Thanks Dave, and thanks Jen; good to see you at the water cooler too. When the Fed funds are at a 16-year high, we need many VettaFi Voices to help advisors and asset managers understand what this means for one another. Powell seemed to be indicating that Fed was more likely to pause rate hikes, but his comments suggested that rate hikes the market expects are not in his and the FOMC mindset. Nadig: So the headline is the headline: 10th consecutive rate increase. 5.25% puts it at a 16-year high. It’s basically the 1980s all over again. And, of course, this was entirely expected. The only question going into yesterday was what the guidance would be, and you really need to use track changes even to tell:
Interest Rates May Finally Level Off, BNDI to Benefit
ETF Database - 05/03/2023The Federal Reserve has enacted its tenth consecutive interest rate hike while signaling that a pause for hikes is possible looking ahead to June’s meeting. In an environment of stable rates, bonds could continue to flourish, and will likely experience increased flows as more advisors and investors shift some of their equity allocations to bonds ahead of a recession and the NEOS Enhanced Income Aggregate Bond ETF (BNDI A-) is worth consideration for income within bonds.
Bull vs. Bear: Find What Glitters When Investing In Gold ETFs
ETF Database - 05/03/2023Bull vs. Bear is a weekly feature where the VettaFi writers’ room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs. Bear, Karrie Gordon and Nick Peters-Golden debated the long-term investing case for gold ETFs. Have the yellow metal’s fundamentals fundamentally changed?
As the Risk Curve Changes, Income-Generating Options
ETF Database - 04/27/2023The aggressive, unprecedented Fed rate hiking regime of the last year has altered the investing landscape that was so dominant in the last decade. In that environment, advisors and investors had to go further out on the risk curve to generate meaningful income. In a market full of income-generating funds, the NEOS lineup is noteworthy for its tax-efficient income within core portfolio allocations.
Consider BNDI for Equity Premium Lows
ETF Database - 04/06/2023The grim economic outlook for the U.S. this year has taken a heavy toll on equities and corporate earnings estimates, resulting in the value of holding stocks over bonds hitting lows not seen since 2007. While the equity outlook continues to face challenges from looming potential recession and high inflation, advisors should consider the opportunities happening right now in bonds, and the income potential with the NEOS Enhanced Income Aggregate Bond ETF (BNDI A-).
Weak Dollar Keeps Gold ETFs Shimmering
ETF Database - 04/05/2023Do you seek safe-haven investments? You’re not alone, as commodity and bond ETFs are on the rise. As of this writing, gold is trading at over $2,000 per ounce. The news comes amid a weakening dollar and the latest ADP National Employment Report showing fewer hiring than expected in March, suggesting a cooling labor market.
VettaFi Voices on: What Is Overlooked in Fixed Income
ETF Database - 03/31/2023This week, the VettaFi Voices gathered around the water cooler to talk about fixed income. With so many different options in the “40” side of portfolios that range from CLOs to bank loans, and advisors looking for the best options in the world of debt and bonds, the Voices dig into the areas they see as overlooked in fixed income right now.
Sell on the Pop Prospects: March 22 Edition
ETF Database - 03/22/2023Here is a look at ETFs that currently offer attractive short selling opportunities. The ETFs included in this list are rated as sell candidates for two reasons. First, each of these funds is deemed to be in a downtrend based on the fact that its 50-day moving average is below 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 above its 20-day moving average, thereby offering a near-term ‘sell on the pop’ opportunity given the longer-term downtrend 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 ETF Database premium content, sign up for a free 14-day trial to ETF Database Pro.
ETF Prime: Rosenbluth Talks Current Research Trends
ETF Database - 03/21/2023On the most recent episode of ETF Prime, VettaFi’s Todd Rosenbluth, head of research, discussed the three big research trends happening currently on the VettaFi platform. Tuttle Capital’s and CIO, Matt Tuttle, shed light on the firm’s two Cramer ETFs, and Matt Hougan, CIO at Bitwise, closed out talking bitcoin placement in portfolios and their newest ETF launched.
Bond ETFs Provide Diversification Benefits Once Again
ETF Database - 03/20/2023This year, let alone a few days in mid-March, is a good reminder of the role bonds and bond ETFs can play within a portfolio. Yes, there has been uncertainty as to whether the Federal Reserve will further raise interest rates in the coming days as it balances the risk of higher rates on the banking system and the broader economy with persistent inflation and job growth. However, a closer look at the leading stock and bond ETF’s total returns are telling and might make you rethink your asset allocation.
If Fed Slows Rate Hikes, Bonds Could Benefit
ETF Database - 03/17/2023Turmoil in the banking sector is likely to elicit a slowing of interest rate hikes by the Fed at next week’s meeting according to markets. If the Fed is forced to slow or halt its interest rate hiking regime, bonds could be a winner looking ahead this year as rates stabilize.