Rising Rate ETF (RISR) Hits New 52-Week High
- FolioBeyond Alternative Income and Interest Rate Hedge ETF RISR: The ETF has hit a 52-week high and risen by 22.81% from its low price, attracting investor interest.
- Active Strategy and Diversification: The fund aims to provide diversification benefits, manage risk from interest rate volatility, and generate current income under various interest rate environments.
- Interest Rate Environment: With reduced expectations of rate cuts in 2024, funds offering protection against rising rates are gaining popularity.
- Performance Outlook: RISR shows positive performance indicators like a dividend yield of 7.20% and a weighted alpha of 7.76, hinting at potential further gains.
- Investment Research: Zacks Investment Research provides insights on top-performing ETFs and stocks, offering recommendations for investors.
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ETFs to Play Amid Long-Term Yields' Best Week Since 1982
Bond Market Volatility: The bond market is experiencing significant sell-offs and volatility, with long-term Treasury yields rising sharply due to President Trump's tariffs, leading to a decline in traditional safe-haven assets like the iShares 20+ Year Treasury Bond ETF (TLT).
Investment Strategies in Rising Rates: Investors are exploring strategies to navigate the rising interest rates, such as investing in senior loans, floating rate notes, shorting U.S. treasuries, and considering niche ETFs that hedge against rising rates, while also being cautious of sectors that typically perform poorly in high-rate environments.
ETF Strategies to Play Higher-Than-Expected September Inflation
Inflation Trends: The annual inflation rate in the U.S. decreased to 2.4% in September 2024, marking a six-month slowdown, although it was slightly above forecasts. Core inflation remained steady at 0.3%, while food and transportation costs saw increases.
Investment Strategies: In response to persistent inflation and rising bond yields, investors are encouraged to consider ETFs that provide protection against higher rates, such as interest rate hedge ETFs and gold investments, which historically perform well during stagflation periods.
Top ETF Stories of August
U.S. Stock Market Performance: U.S. stocks saw gains in August, driven by optimism around potential Federal Reserve rate cuts following a favorable inflation report, with the Dow Jones up 4.6% for the month and the S&P 500 gaining 5.7%, while the tech sector remained volatile.
Economic Indicators and Consumer Sentiment: The U.S. economy grew at a 3% annual pace in Q2, supported by strong consumer spending; however, mixed signals from retail earnings suggest uncertainty about consumer resilience, as major retailers reported cautious outlooks despite some positive sales data.
High Rates to Stay? Secure Your Portfolio With These ETFs
- Federal Reserve Governor's Expectations: Michelle Bowman, a Federal Reserve Governor, predicts that interest rates will remain unchanged until 2024, with no rate cuts expected.
- Hawkish Stance: Bowman, known as one of the more hawkish American central bankers, remains open to raising rates due to persistent unfavorable inflation data.
- Investor Expectations: Despite Bowman's stance, investors anticipate two rate cuts by the end of the year, with a 56.3% likelihood of a rate cut in September according to the CME FedWatch Tool.
- Inflation and Interest Rates: While recent signs show a slight easing in inflation, policymakers are still uncertain about its stability, leading to caution in adjusting interest rates.
- Investment Recommendations: Given the uncertainty around interest rates, investors are advised to consider value stocks and consumer staples as potential investment options to hedge against interest rate increases.
Rising Rate ETF (RISR) Hits New 52-Week High
- FolioBeyond Alternative Income and Interest Rate Hedge ETF RISR: The ETF has hit a 52-week high and risen by 22.81% from its low price, attracting investor interest.
- Active Strategy and Diversification: The fund aims to provide diversification benefits, manage risk from interest rate volatility, and generate current income under various interest rate environments.
- Interest Rate Environment: With reduced expectations of rate cuts in 2024, funds offering protection against rising rates are gaining popularity.
- Performance Outlook: RISR shows positive performance indicators like a dividend yield of 7.20% and a weighted alpha of 7.76, hinting at potential further gains.
- Investment Research: Zacks Investment Research provides insights on top-performing ETFs and stocks, offering recommendations for investors.
Rates to Stay Higher for Longer? ETF Strategies to Play
- Fed's Interest Rate Cut Predictions: Neel Kashkari of the Fed suggests a possible interest rate cut in December 2024, emphasizing the need for more evidence on inflation trends before deciding.
- Market and Economic Outlook: Despite recent rate hikes, the U.S. job market remains strong, with expectations of gradual economic cooling. Inflation is slightly above the Fed's 2% target.
- Investing Strategies for Rising Rates: Suggestions include senior loans, floating rate bonds, cash, short-term fixed income, and niche ETFs to mitigate risks in a rising rate environment.
- ETF Investment Options: Various ETFs like Virtus Seix Senior Loan ETF, iShares Floating Rate Bond ETF, and ProShares UltraShort Real Estate are highlighted as potential investment choices.
- Recommendations for Investors: Consider inverse REIT ETFs, shorting U.S. treasuries, and exploring ETF options like Simplify Interest Rate Hedge ETF and Global X Interest Rate Hedge ETF for protection against rising rates.
ETFs to Play Amid Long-Term Yields' Best Week Since 1982
Bond Market Volatility: The bond market is experiencing significant sell-offs and volatility, with long-term Treasury yields rising sharply due to President Trump's tariffs, leading to a decline in traditional safe-haven assets like the iShares 20+ Year Treasury Bond ETF (TLT).
Investment Strategies in Rising Rates: Investors are exploring strategies to navigate the rising interest rates, such as investing in senior loans, floating rate notes, shorting U.S. treasuries, and considering niche ETFs that hedge against rising rates, while also being cautious of sectors that typically perform poorly in high-rate environments.
ETF Strategies to Play Higher-Than-Expected September Inflation
Inflation Trends: The annual inflation rate in the U.S. decreased to 2.4% in September 2024, marking a six-month slowdown, although it was slightly above forecasts. Core inflation remained steady at 0.3%, while food and transportation costs saw increases.
Investment Strategies: In response to persistent inflation and rising bond yields, investors are encouraged to consider ETFs that provide protection against higher rates, such as interest rate hedge ETFs and gold investments, which historically perform well during stagflation periods.
Top ETF Stories of August
U.S. Stock Market Performance: U.S. stocks saw gains in August, driven by optimism around potential Federal Reserve rate cuts following a favorable inflation report, with the Dow Jones up 4.6% for the month and the S&P 500 gaining 5.7%, while the tech sector remained volatile.
Economic Indicators and Consumer Sentiment: The U.S. economy grew at a 3% annual pace in Q2, supported by strong consumer spending; however, mixed signals from retail earnings suggest uncertainty about consumer resilience, as major retailers reported cautious outlooks despite some positive sales data.
High Rates to Stay? Secure Your Portfolio With These ETFs
- Federal Reserve Governor's Expectations: Michelle Bowman, a Federal Reserve Governor, predicts that interest rates will remain unchanged until 2024, with no rate cuts expected.
- Hawkish Stance: Bowman, known as one of the more hawkish American central bankers, remains open to raising rates due to persistent unfavorable inflation data.
- Investor Expectations: Despite Bowman's stance, investors anticipate two rate cuts by the end of the year, with a 56.3% likelihood of a rate cut in September according to the CME FedWatch Tool.
- Inflation and Interest Rates: While recent signs show a slight easing in inflation, policymakers are still uncertain about its stability, leading to caution in adjusting interest rates.
- Investment Recommendations: Given the uncertainty around interest rates, investors are advised to consider value stocks and consumer staples as potential investment options to hedge against interest rate increases.
Rising Rate ETF (RISR) Hits New 52-Week High
- FolioBeyond Alternative Income and Interest Rate Hedge ETF RISR: The ETF has hit a 52-week high and risen by 22.81% from its low price, attracting investor interest.
- Active Strategy and Diversification: The fund aims to provide diversification benefits, manage risk from interest rate volatility, and generate current income under various interest rate environments.
- Interest Rate Environment: With reduced expectations of rate cuts in 2024, funds offering protection against rising rates are gaining popularity.
- Performance Outlook: RISR shows positive performance indicators like a dividend yield of 7.20% and a weighted alpha of 7.76, hinting at potential further gains.
- Investment Research: Zacks Investment Research provides insights on top-performing ETFs and stocks, offering recommendations for investors.
Rates to Stay Higher for Longer? ETF Strategies to Play
- Fed's Interest Rate Cut Predictions: Neel Kashkari of the Fed suggests a possible interest rate cut in December 2024, emphasizing the need for more evidence on inflation trends before deciding.
- Market and Economic Outlook: Despite recent rate hikes, the U.S. job market remains strong, with expectations of gradual economic cooling. Inflation is slightly above the Fed's 2% target.
- Investing Strategies for Rising Rates: Suggestions include senior loans, floating rate bonds, cash, short-term fixed income, and niche ETFs to mitigate risks in a rising rate environment.
- ETF Investment Options: Various ETFs like Virtus Seix Senior Loan ETF, iShares Floating Rate Bond ETF, and ProShares UltraShort Real Estate are highlighted as potential investment choices.
- Recommendations for Investors: Consider inverse REIT ETFs, shorting U.S. treasuries, and exploring ETF options like Simplify Interest Rate Hedge ETF and Global X Interest Rate Hedge ETF for protection against rising rates.
