The debt limit talk has reached its last and most important stage with just five days, or barely more than 100 hours, until the U.S. Treasury may run out of money. Both the stock and the bond market are likely to react strongly depending whether a deal is reached or not, or if any other surprises arise at the end.
High-yield bonds issued by American and European corporations are considered attractive assets since they offer above-average yields at cheap prices, according to Oaktree Capital Management's most recent credit market outlook.
The risk appetite of investors remains depressed, not far from the extreme pessimism of 2022 and comparable to the levels of the 2009 Great Financial Crisis, according to the most recent Global Fund Manager Survey conducted by Bank of America.
The Federal Reserve's interest rate decision on Wednesday will have major repercussions not just for the stock market, but also for the bond market. The market is now pricing in a 25-basis-point hike to 4.75%-5% with a nearly 90% possibility, but what the Fed indicates it will do after March is what is putting investors on edge.
The CBOE Volatility Index rose sharply, nearly topping the 30s level on Wednesday. On CNBC's "Options Action," Brian Stutland of Equity Armor Investments said iShares iBoxx $ High Yield Corporate Bond ETF traded at 2x average daily volume on Wednesday. Don't forget to check out our premarket coverage here.
iShares iBoxx $ High Yield Corporate Bond ETF is the ETF that tracks high-yield bonds. On CNBC's "Options Action," Mike Khouw of Optimize Advisors said puts were outpacing calls by over 2-to-1 on HYG Corporate Bond ETF on Monday.
Macro trading is an investment strategy that takes into account both domestic and global macroeconomic trends. Most global macro trading ideas are in essence so simple that even the most inexperienced investor could grasp them. The difficulty comes not from the trades themselves, but from the timing of execution.
Here is a look at ETFs that currently offer attractive income opportunities. The high-yield candidates included in this list meet two sets of criteria. First, each of these funds is deemed to be a high-yield prospect because it boasts an annual dividend yield upwards of 5%.
Second, each of these ETFs also boasts over $100 million in total assets under management to help steer investors away from less established funds. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.
Third, each of these ETFs also meets a minimum 20-day average trading volume of 0.5 million. 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.
As of year-end 2022, U.S. insurance companies invested $37 billion in ETFs. This represented only a fraction of the $6.5 trillion in U.S. ETF assets under management and the $7.9 trillion in invested assets of U.S. insurance companies, according to a just-released report from S&P Dow Jones Indices. Despite representing a small slice of the ETF market, insurance companies are large owners of some widely held ETFs. This ownership, particularly of fixed income ETFs, helps to support liquidity for all investors.
Here is a look at ETFs that currently offer attractive income opportunities. The high-yield candidates included in this list meet two sets of criteria. First, each of these funds is deemed to be a high-yield prospect because it boasts an annual dividend yield upwards of 5%.
Second, each of these ETFs also boasts over $100 million in total assets under management to help steer investors away from less established funds. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.
Third, each of these ETFs also meets a minimum 20-day average trading volume of 0.5 million. 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.
In this week’s asset class flows, equity ETFs added $10 billion in just one week overall, more than doubling up on bond ETFs at about $4 billion. That said, equity ETF inflows could largely be credited once again to the sheer size of the SPDR S&P 500 Trust ETF (SPY A) which added more than $5.2 billion over the last week or so. As such, bond ETF flows are the lead story in the competition among asset classes, with a greater diversity of sub-themes that deserve a look.
Here is a look at ETFs that currently offer attractive income opportunities. The high-yield candidates included in this list meet two sets of criteria. First, each of these funds is deemed to be a high-yield prospect because it boasts an annual dividend yield upwards of 5%.
Second, each of these ETFs also boasts over $100 million in total assets under management to help steer investors away from less established funds. 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.
Leading into “Fed Day” on Wednesday, some market observers had suggested the Federal Reserve wouldn’t raise interest rates, in order to avoid adding even more volatility to markets following the bank crisis drama. The Fed raised them anyway. For this week’s watercooler conversation, the VettaFi Voices assess the impact of yet more Fed rate hikes, and what it all might mean for bond and equity risk.
The largest U.S. high yield bond ETFs have seen sizable net outflows thus far in 2023, but in mid- March, there are positive signs. According to VettaFi’s investment sentiment analysis, high yield bond ETFs represented a higher percentage of the corporate bond fund traffic on VettaFi platforms in mid-March relative to a month earlier. In addition, the iShares iBoxx $High Yield Corporate Bond ETF (HYG B+) gathered approximately $550 million of new money in the seven-day period ended March 21 to push its asset base to $13 billion, the SPDR Bloomberg High Yield Bond ETF (JNK A-) added nearly $200 million to hit $6.6 billion, and the iShares Broad USD High Yield Corporate Bond ETF (USHY A) pulled in $31 million to push it to $8.7 billion. Yet many advisors are not inclined to make changes to their high yield credit exposure over the next six months.
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Commentary
High-Yield Prospects: May 30 Edition
ETF Database - 05/31/2023Here is a look at ETFs that currently offer attractive income opportunities. The high-yield candidates included in this list meet two sets of criteria. First, each of these funds is deemed to be a high-yield prospect because it boasts an annual dividend yield upwards of 5%. Second, each of these ETFs also boasts over $100 million in total assets under management to help steer investors away from less established funds. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. Third, each of these ETFs also meets a minimum 20-day average trading volume of 0.5 million. 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.
Insurers Own Major Stakes in Fixed Income ETFs
ETF Database - 05/26/2023As of year-end 2022, U.S. insurance companies invested $37 billion in ETFs. This represented only a fraction of the $6.5 trillion in U.S. ETF assets under management and the $7.9 trillion in invested assets of U.S. insurance companies, according to a just-released report from S&P Dow Jones Indices. Despite representing a small slice of the ETF market, insurance companies are large owners of some widely held ETFs. This ownership, particularly of fixed income ETFs, helps to support liquidity for all investors.
High-Yield Prospects: May 3 Edition
ETF Database - 05/03/2023Here is a look at ETFs that currently offer attractive income opportunities. The high-yield candidates included in this list meet two sets of criteria. First, each of these funds is deemed to be a high-yield prospect because it boasts an annual dividend yield upwards of 5%. Second, each of these ETFs also boasts over $100 million in total assets under management to help steer investors away from less established funds. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. Third, each of these ETFs also meets a minimum 20-day average trading volume of 0.5 million. 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 Investors Favor Bonds and the Basics in April
BY Ryan Jackson, Morningstar - 05/01/2023Bond ETF Flows Strong, Volatility ETFs Reach $3 Billion
ETF Database - 04/19/2023In this week’s asset class flows, equity ETFs added $10 billion in just one week overall, more than doubling up on bond ETFs at about $4 billion. That said, equity ETF inflows could largely be credited once again to the sheer size of the SPDR S&P 500 Trust ETF (SPY A) which added more than $5.2 billion over the last week or so. As such, bond ETF flows are the lead story in the competition among asset classes, with a greater diversity of sub-themes that deserve a look.
High-Yield Prospects: April 5 Edition
ETF Database - 04/05/2023Here is a look at ETFs that currently offer attractive income opportunities. The high-yield candidates included in this list meet two sets of criteria. First, each of these funds is deemed to be a high-yield prospect because it boasts an annual dividend yield upwards of 5%. Second, each of these ETFs also boasts over $100 million in total assets under management to help steer investors away from less established funds. 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.
VettaFi Voices On: The Fed's Next Steps On Rate Hikes
ETF Database - 03/24/2023Leading into “Fed Day” on Wednesday, some market observers had suggested the Federal Reserve wouldn’t raise interest rates, in order to avoid adding even more volatility to markets following the bank crisis drama. The Fed raised them anyway. For this week’s watercooler conversation, the VettaFi Voices assess the impact of yet more Fed rate hikes, and what it all might mean for bond and equity risk.
Chart of the Week: Advisors Understanding High Yield Credit Risk
ETF Database - 03/23/2023The largest U.S. high yield bond ETFs have seen sizable net outflows thus far in 2023, but in mid- March, there are positive signs. According to VettaFi’s investment sentiment analysis, high yield bond ETFs represented a higher percentage of the corporate bond fund traffic on VettaFi platforms in mid-March relative to a month earlier. In addition, the iShares iBoxx $High Yield Corporate Bond ETF (HYG B+) gathered approximately $550 million of new money in the seven-day period ended March 21 to push its asset base to $13 billion, the SPDR Bloomberg High Yield Bond ETF (JNK A-) added nearly $200 million to hit $6.6 billion, and the iShares Broad USD High Yield Corporate Bond ETF (USHY A) pulled in $31 million to push it to $8.7 billion. Yet many advisors are not inclined to make changes to their high yield credit exposure over the next six months.