3 New Fixed-Income ETFs Use Options To Target Higher Income
New ETFs Launched: First Trust Advisors has introduced three new Target Income ETFs—LQTI, HYTI, and LTTI—designed to enhance income potential while maintaining fixed-income exposure through option strategies, each with a net expense ratio of 0.65%.
Investment Focus: The funds focus on different sectors, including investment-grade corporate bonds, high-yield corporate bonds, and long-term U.S. Treasury securities, utilizing FLEX options to aim for an annual income rate 5% higher than their underlying ETFs.
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3 ETFs Built to Withstand the Next Market Downturn
Market Trends: The stock market has shown upward trends in 2026, but there are concerns about potential cracks, particularly due to a slowing labor market and the risk of an AI bubble collapse, suggesting the market may be overvalued.
Investment Strategies: Investors are increasingly turning to exchange-traded funds (ETFs) that focus on risk management to protect their portfolios in case of a market crash, with several funds offering different strategies to appeal to cautious investors.
Stable Investments: The S&P 500 Low Volatility ETF (SPLV) and other funds focus on stable, large-cap companies, providing a defensive play during market fluctuations while offering dividends, making them attractive for income-seeking investors.
Long-Dated Treasury Funds: Long-dated Treasury bond ETFs, like TLT, may offer greater yield potential but come with higher interest rate risks, making them a more stable investment option compared to equities during market downturns.
US Treasury Yields Decline: 10-Year Down 3 Basis Points, 2-Year Down 2.4 Basis Points
Treasury Yield Decline: The yield on the 10-year U.S. Treasury has decreased by 3 basis points.
Short-Term Treasury Yield Drop: The yield on the 2-year U.S. Treasury has fallen by 2.4 basis points.
US Government Shutdown Concludes After House Passes Funding Legislation: Report
Government Funding Bill: President Donald Trump announced he would sign a bill to grant full-year funding for the federal government, effectively ending a partial government shutdown that began over the weekend.
DHS Funding Extension: The Department of Homeland Security received a funding extension only through February 13, while the House of Representatives approved a funding package to avoid a prolonged shutdown.
Democratic Proposals: Senate Minority Leader Chuck Schumer indicated that Democrats are planning to present a detailed proposal on reforms for the Department of Homeland Security soon.
Market Impact: The partial shutdown has already affected key data releases, including the January jobs report, and has led to declines in major stock indices, reflecting negative retail sentiment.
Silver Prices Surge Once More: Reasons the Upsurge Might Be Temporary.
Silver's Recovery: Silver is experiencing a significant recovery, outperforming gold, stocks, Treasuries, and Bitcoin.
Investor Caution: Investors are advised to consider silver's historical performance before investing in the current rally.
Wharton's Jeremy Siegel Thinks Kevin Warsh as Fed Chair is Positive for Wall Street, Yet Trump Tariffs Could Still Be Unpredictable
Nomination of Kevin Warsh: Economist Jeremy Siegel views the nomination of Kevin Warsh as a significant upgrade for the Federal Reserve, believing it will positively impact both bonds and equities by maintaining a tough stance on inflation.
Concerns about Warsh's Hawkishness: Siegel acknowledges investor concerns regarding Warsh's hawkish tendencies, suggesting that while he supports a gradual reduction of the Fed's mortgage-backed securities, it should not be done too quickly.
Constructive Outlook for Equities: Siegel expresses a constructive outlook for equity markets, despite uncertainties surrounding changes at the Fed and government shutdown risks, highlighting recent performance disparities between Meta and Microsoft shares.
AI and Capital Spending Trends: Siegel predicts that 2023 will be the year of AI users, with capital spending continuing to rise as firms leverage AI to enhance productivity, contrasting with those merely selling traditional products.
Despite Significant Developments in 2026, Treasuries Remain Relatively Unchanged.
Market Performance: Despite significant geopolitical events and news, the Treasury market has shown minimal movement, with the iShares 20+ Year Treasury Bond (TLT) yielding almost no returns in January.
Geopolitical Events: President Donald Trump made headlines with actions against Venezuela, threats towards Iran, and a controversial stance on Greenland, yet these did not impact Treasury yields significantly.
3 ETFs Built to Withstand the Next Market Downturn
Market Trends: The stock market has shown upward trends in 2026, but there are concerns about potential cracks, particularly due to a slowing labor market and the risk of an AI bubble collapse, suggesting the market may be overvalued.
Investment Strategies: Investors are increasingly turning to exchange-traded funds (ETFs) that focus on risk management to protect their portfolios in case of a market crash, with several funds offering different strategies to appeal to cautious investors.
Stable Investments: The S&P 500 Low Volatility ETF (SPLV) and other funds focus on stable, large-cap companies, providing a defensive play during market fluctuations while offering dividends, making them attractive for income-seeking investors.
Long-Dated Treasury Funds: Long-dated Treasury bond ETFs, like TLT, may offer greater yield potential but come with higher interest rate risks, making them a more stable investment option compared to equities during market downturns.
US Treasury Yields Decline: 10-Year Down 3 Basis Points, 2-Year Down 2.4 Basis Points
Treasury Yield Decline: The yield on the 10-year U.S. Treasury has decreased by 3 basis points.
Short-Term Treasury Yield Drop: The yield on the 2-year U.S. Treasury has fallen by 2.4 basis points.
US Government Shutdown Concludes After House Passes Funding Legislation: Report
Government Funding Bill: President Donald Trump announced he would sign a bill to grant full-year funding for the federal government, effectively ending a partial government shutdown that began over the weekend.
DHS Funding Extension: The Department of Homeland Security received a funding extension only through February 13, while the House of Representatives approved a funding package to avoid a prolonged shutdown.
Democratic Proposals: Senate Minority Leader Chuck Schumer indicated that Democrats are planning to present a detailed proposal on reforms for the Department of Homeland Security soon.
Market Impact: The partial shutdown has already affected key data releases, including the January jobs report, and has led to declines in major stock indices, reflecting negative retail sentiment.
Silver Prices Surge Once More: Reasons the Upsurge Might Be Temporary.
Silver's Recovery: Silver is experiencing a significant recovery, outperforming gold, stocks, Treasuries, and Bitcoin.
Investor Caution: Investors are advised to consider silver's historical performance before investing in the current rally.
Wharton's Jeremy Siegel Thinks Kevin Warsh as Fed Chair is Positive for Wall Street, Yet Trump Tariffs Could Still Be Unpredictable
Nomination of Kevin Warsh: Economist Jeremy Siegel views the nomination of Kevin Warsh as a significant upgrade for the Federal Reserve, believing it will positively impact both bonds and equities by maintaining a tough stance on inflation.
Concerns about Warsh's Hawkishness: Siegel acknowledges investor concerns regarding Warsh's hawkish tendencies, suggesting that while he supports a gradual reduction of the Fed's mortgage-backed securities, it should not be done too quickly.
Constructive Outlook for Equities: Siegel expresses a constructive outlook for equity markets, despite uncertainties surrounding changes at the Fed and government shutdown risks, highlighting recent performance disparities between Meta and Microsoft shares.
AI and Capital Spending Trends: Siegel predicts that 2023 will be the year of AI users, with capital spending continuing to rise as firms leverage AI to enhance productivity, contrasting with those merely selling traditional products.
Despite Significant Developments in 2026, Treasuries Remain Relatively Unchanged.
Market Performance: Despite significant geopolitical events and news, the Treasury market has shown minimal movement, with the iShares 20+ Year Treasury Bond (TLT) yielding almost no returns in January.
Geopolitical Events: President Donald Trump made headlines with actions against Venezuela, threats towards Iran, and a controversial stance on Greenland, yet these did not impact Treasury yields significantly.
