Latest news with #iSharesShortTreasuryBondETF
Zawya
21-04-2025
- Business
- Zawya
Investors flock to safety of US short-term government bond funds
U.S. short-term government bond funds have received large inflows this month even as most other funds across asset classes suffered heavy selling in markets hit by worries over U.S. tariffs and recession risks. Treasury yields have risen this month, as the bonds sold off, as hedge funds unwound their leveraged positions in basis trades and overseas investors sold them in apparent retaliation for tariffs and owing to doubts over the safe-haven quality of U.S. assets. However, short-term bonds have rallied after the initial selloff, which analysts said showed they offer more safety and liquidity and tend to lose less value in response to changes in yields. According to LSEG Lipper, U.S. short-term government bond funds received inflows of $18.1 billion so far this month. If the flows are sustained, April could see them get the highest inflows in two-and-a-half years. In comparison, U.S. bond market funds overall saw outflows of $47.7 billion this month. The Vanguard Long-Term Treasury Index Fund, which includes bonds with maturies greater than 10 years, has fallen 3.45% this month. In contrast, the Vanguard Short-Term Treasury Index fund, which invests in bonds with maturities lesser than 3 years, has risen 0.03%. Steven Roge, chief investment officer at financial advisory firm R.W. Rogé & Company Inc, said the higher inflows into U.S. government short-term bond funds are coming from retail investors and wealth managers, prioritizing income and capital preservation. "When short-term yields are nipping at the heels of long-term ones, many investors are thinking, 'Why take on extra duration risk for maybe just a tiny bit more yield?'". With uncertainty over tariffs and Federal Reserve rate cuts lingering, analysts expect higher bond volatility to divert fund flows out of riskier segments such as high-yield bonds and private credit into short-term government bond funds. "Every time new news comes out that increases the chance for large U.S. or foreign tariffs to be a reality, the risk of recession increases and we should expect more flight into the relative safety of short-term government bonds," said Brian Huckstep, chief investment officer at Advyzon Investment Management. And, when market stability returns, being invested in short-term bonds will enable investors to quickly shift money into riskier assets to capture the rally, analysts said. Leading the inflows this month among short-term government bond funds were the SPDR Bloomberg 1-3 Month T-Bill ETF, the iShares 0-3 Month Treasury Bond ETF, and the iShares Short Treasury Bond ETF, which attracted inflows of $7.9 billion, $4.2 billion, and $2.8 billion, respectively. (Reporting by Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru Editing by Vidya Ranganathan)
Yahoo
21-04-2025
- Business
- Yahoo
Investors flock to safety of US short-term government bond funds
By Patturaja Murugaboopathy (Reuters) -U.S. short-term government bond funds have received large inflows this month even as most other funds across asset classes suffered heavy selling in markets hit by worries over U.S. tariffs and recession risks. Treasury yields have risen this month, as the bonds sold off, as hedge funds unwound their leveraged positions in basis trades and overseas investors sold them in apparent retaliation for tariffs and owing to doubts over the safe-haven quality of U.S. assets. However, short-term bonds have rallied after the initial selloff, which analysts said showed they offer more safety and liquidity and tend to lose less value in response to changes in yields. According to LSEG Lipper, U.S. short-term government bond funds received inflows of $18.1 billion so far this month. If the flows are sustained, April could see them get the highest inflows in two-and-a-half years. In comparison, U.S. bond market funds overall saw outflows of $47.7 billion this month. The Vanguard Long-Term Treasury Index Fund, which includes bonds with maturies greater than 10 years, has fallen 3.45% this month. In contrast, the Vanguard Short-Term Treasury Index fund, which invests in bonds with maturities lesser than 3 years, has risen 0.03%. Steven Roge, chief investment officer at financial advisory firm R.W. Rogé & Company Inc, said the higher inflows into U.S. government short-term bond funds are coming from retail investors and wealth managers, prioritizing income and capital preservation. "When short-term yields are nipping at the heels of long-term ones, many investors are thinking, 'Why take on extra duration risk for maybe just a tiny bit more yield?'". With uncertainty over tariffs and Federal Reserve rate cuts lingering, analysts expect higher bond volatility to divert fund flows out of riskier segments such as high-yield bonds and private credit into short-term government bond funds. "Every time new news comes out that increases the chance for large U.S. or foreign tariffs to be a reality, the risk of recession increases and we should expect more flight into the relative safety of short-term government bonds," said Brian Huckstep, chief investment officer at Advyzon Investment Management. And, when market stability returns, being invested in short-term bonds will enable investors to quickly shift money into riskier assets to capture the rally, analysts said. Leading the inflows this month among short-term government bond funds were the SPDR Bloomberg 1-3 Month T-Bill ETF, the iShares 0-3 Month Treasury Bond ETF, and the iShares Short Treasury Bond ETF, which attracted inflows of $7.9 billion, $4.2 billion, and $2.8 billion, respectively. Sign in to access your portfolio
Yahoo
14-04-2025
- Business
- Yahoo
Software Engineer Making $9,000 a Month in Dividends Shares Portfolio, Says He 'YOLO'd Tech Stocks in IRA'
President Donald Trump's tariffs against America's trading partners and the subsequent retaliatory measures from China and Europe resulted in major losses for investors across the globe, with no end to volatility in sight. Trade tensions may ease amid expected deals between key countries, but prudent investors are rethinking their long-term strategies. Dividend stocks have gained significance in this period of market turbulence because of their strong history. A March report from S&P Global showed that dividends have accounted for about 31% of the total S&P 500 returns since 1926. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. A few weeks ago, a dividend investor shared his income report and portfolio details on r/Dividends — a Reddit community with over 700,000 followers. The portfolio screenshots shared by the investor showed he was making about $9,250 per month, or $111,100 annually, in dividends. His total portfolio yield was about 2.3%. "Dividends and interest cover 60% of expenses. Decent growth without huge volatility," he said. The investor, 58, said he was a software engineer in Silicon Valley and retired in 2021. He said his goal is to cover his expenses of $15,000 per month with dividends by 2030. "YOLO'd tech stocks in my IRA," the investor said, referring to the social media slang for taking a bold, high-risk approach. Trending: Hasbro, MGM, and Skechers trust this AI marketing firm — . Let's take a look at some of the key holdings in the investor's portfolio. iShares Short Treasury Bond ETF The iShares Short Treasury Bond ETF (NASDAQ:SHV) gives investors exposure to US Treasury bonds with remaining maturities of one year or less. SHV is suitable for investors looking for low-risk funds to preserve capital and earn income. The investor said SHV accounted for about 5% of his total portfolio. iShares Core U.S. Aggregate Bond ETF iShares Core U.S. Aggregate Bond ETF (NYSE:AGG) was another key bond ETF in the investor's portfolio. The fund tracks an index composed of investment-grade US U.S. Dividend Equity ETF The investor earning about $9,000 in monthly dividends had Schwab U.S. Dividend Equity ETF (NYSE:SCHD) in his portfolio. Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index and provides exposure to some of the top dividend stocks trading in the U.S., including Verizon (NYSE:VZ), Coca-Cola (NYSE:KO), ConocoPhillips (NYSE:COP), Lockheed Martin (NYSE:LMT), PepsiCo (NASDAQ:PEP) and Chevron (NYSE:CVX). iShares Core S&P 500 ETF The investor making $9,000 a month in dividends said about 60% of his portfolio was allocated to the iShares Core S&P 500 ETF (NYSE:IVV). The fund tracks the S&P 500 Index and yields about 1.2%. It provides investors exposure to some of the biggest companies in the world, including Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, GOOGL)), among others. Read Next: Have $200K saved? Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Software Engineer Making $9,000 a Month in Dividends Shares Portfolio, Says He 'YOLO'd Tech Stocks in IRA' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
