At this moment, it is wise to play long-term Treasury bond ETFs until the Fed hike talks resurface and the inflation picture remains muted. Re: VGIT vs. IEF.

To read this article on Zacks.com click here. • Roku's Stock Is Surging, is it a Buy Right Now. VGIT is an ETF, whereas SPTI is a mutual fund. YDNAL Posts: 13774 Joined: Tue Apr 10, 2007 9:04 pm Location: Biscayne Bay. Then again, overvaluation concerns are rife. All rights reserved. Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com! Current and Historical Performance Performance for Vanguard Long-Treasury ETF on Yahoo Finance. Get answers to common ETF questions Click to get this free report, ISHARS-20+YTB (TLT): ETF Research Reports, VANGD-LT GOV BD (VGLT): ETF Research Reports, VANGD-EX DUR TR (EDV): ETF Research Reports, PIMCO-25Y ZERO (ZROZ): ETF Research Reports. Today, you can download 7 Best Stocks for the Next 30 Days.

Nasdaq This suggests that benchmark U.S. Treasuries yielding 1.56% on September 27 are overvalued. Information about your device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps.
Notably, policy makers now envisage two rate hikes in 2017, down from the June median projection of three, as per Bloomberg. VGIT holds 158 securities and VGLT holds 60 securities, but IEF only holds 23.

Learn about VGIT with our data and independent analysis including price, star rating, asset allocation, capital gains, and dividends. And the Fed’s credibility in assessing the economic condition will also come under question. Copyright © Today, you can download 7 Best Stocks for the Next 30 Days. 1125 N. Charles St, Baltimore, MD 21201. Compare ETFs vs. mutual funds.

To see all exchange delays and terms of use, please see disclaimer. This in turn may bolster the inflationary outlook, which can weigh on Treasury bond ETFs. Find out more about how we use your information in our Privacy Policy and Cookie Policy. in Government Bonds ETFs. Copyright © 2020 InvestorPlace Media, LLC. Yahoo is part of Verizon Media. Post by YDNAL » Mon Aug 13, 2012 1:15 pm. Even Deutsche Bank has indicated that “a 35-year party is over for bond bulls. Is this a concern for anyone? Rank Symbol Name Dividend Yield; 1: LGOV ... VGIT: Vanguard Intermediate-Term Treasury ETF: 1.54%: 18: SCHQ: Schwab Long-Term U.S. Treasury ETF: 1.48%: 19: Copyright © 2020. Top. Also, a still-edgy market will support safe-haven long-term Treasury ETFs to a large extent. As per data from CME Group, the probability of a hike in the final month of this year increased to 59% following the Fed comments from 57% prior to the statements (read: Fed Plays Safe As Expected, Outlook Positive: ETFs to Buy). Want the latest recommendations from Zacks Investment Research?

This is because the next meeting during November 1–2 will be just before the presidential election and the Fed is unlikely to hike rates in an uncertain time like that.

Also, for the asset allocation to treasuries, which ETFs do you all prefer use?

VGLT's dividend yield currently ranks #11 of 36 vs. its peers in the Government Bonds ETFs category. Not only this, BlackRock, Inc. (BLK) also cautioned about owning Treasuries as the Fed is likely to hike this year (read: Is the Treasury Bond ETF Rally Over?).”.


Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Since long-term yields projections have been cut, investors can play the long-term Treasury bond ETFs at the current level. 1125 N. Charles St, Baltimore, MD 21201. With the Fed keeping rates unchanged in the September meeting, December is the only possible as well as plausible month for a hike. Get it free >> Want the latest recommendations from Zacks Investment Research? 2020 InvestorPlace Media, LLC. Article printed from InvestorPlace Media, https://investorplace.com/2016/10/should-you-buy-or-sell-treasury-etfs-now/. Investors should note that Fed officials reduced GDP growth projection for this year to 1.8% from 2% projected in June, but maintained the PCE inflation projection at 2%. To enable Verizon Media and our partners to process your personal data select 'I agree', or select 'Manage settings' for more information and to manage your choices. Just enter your email address below. Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. 4 Long-Term Treasury ETFs to Consider (ZROZ, EDV, VGLT, TLT), Fed Plays Safe As Expected, Outlook Positive: ETFs to Buy, Prepare for Rising Rates with These Inverse & Hedged Bond ETFs, The Top 10 S&P 500 Dividend Stocks to Buy Now, Gold Prices: Yesterday’s Rally Put Our ‘Trade of the Decade’ on Sale, Investors Are Buying this Dip, and You Can Sell Puts on Logitech, Stock Market Live Updates Wednesday: The Dow Flips Into the Red to Close the Day, 7 Dow Jones Stocks to Buy for the Post-Election Surge, 7 High-Yield Dividend Companies to Invest in During the Pandemic, 9 Cyclical Stocks With Further Gains to Come, Safely Trading NIO Stock Ahead Of High-Expectation Earnings.

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How Is U.S. Treasury Yield Curve Behaving Post Fed? Investors should also note that oil prices are likely to remain steady in the medium term on hopes of an output cut in November. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. The yield on two-year U.S. Treasury bonds dropped 4 bps to 0.75% in the last five days (as of September 27, 2016) while the yield on 30-year Treasury bonds declined 11 bps to 2.28% during the same timeframe. Societe Generale SA indicated in July that the ‘fair value’ for the 10-year Treasury yield is 1.95%. All these factors speak in favor of Treasury bond ETFs. • 3 Cleantech ETFs to Buy for a Biden Presidency.  Industry Rank, Ranked of 38 VGIT has a lower 5-year return than SPTI (3.39% vs 3.45%). Below we highlight a few long-term U.S. Treasury bond ETF choices (read: Prepare for Rising Rates with These Inverse & Hedged Bond ETFs). The difference in yield between two-year U.S. Treasuries and 30-year U.S. Treasuries declined after the Fed kept interest rates unchanged in the 0.25–0.50% band during the September 20–21 meeting. VGIT has a lower expense ratio than SPTI (0.05% vs 0.06%). The Fed still expects three rate hikes in 2018 and three more in 2019. See how 9 model portfolios have performed in the past. Below is the comparison between VGIT …

4 Long-Term Treasury ETFs to Consider (ZROZ, EDV, VGLT, TLT) Consider these investment while all eyes are on the Fed By , Zacks Investment Research Oct 1, … • Verizon vs. AT&T: Which Stock is a Better Buy? While several asset classes will be impacted in the medium term, one of the most vulnerable areas will be the U.S. Treasury market which has surged this year with iShares 20+ Year Treasury Bond (TLT) gaining about 17% (as of September 27, 2016) (see all Government Bond ETFs here). We and our partners will store and/or access information on your device through the use of cookies and similar technologies, to display personalised ads and content, for ad and content measurement, audience insights and product development. Trade Grade

But at the same time, it cut its long-run target for fed funds to 2.9% from 3%, which is expected to be touched in 2020, at the earliest. quotes delayed at least 15 minutes, all others at least 20 minutes.  Peer Grade PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund (ZROZ), Vanguard Extended Duration Treasury ETF (EDV), Vanguard Long-Term Government Bond ETF (VGLT). All rights reserved. First Trust Long Duration Opportunities ETF, iShares iBonds Dec 2029 Term Corporate ETF, Xtrackers Barclays International Treasury Bond Hedged ETF, PIMCO 1-3 Year US Treasury Index Exchage-Traded Fund, SPDR Bloomberg Barclays Intermediate Term Treasury ETF, PIMCO 25 Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund, Schwab Intermediate-Term U.S. Treasury ETF, Franklin Liberty Short Duration U.S. Government ETF, Goldman Sachs Access Treasury 0-1 Year ETF, iShares Trust - iShares iBonds Dec 2030 Term Treasury ETF, iShares 25+ Year Treasury STRIPS Bond ETF, SPDR Bloomberg Barclays 3-12 Month T-Bill ETF, iPath Series B US Treasury 10-year Bear ETN, Innovator 20+ Year Treasury Bond 5 Floor ETF - July, • 3 "Strong Buy" Tech Stocks to Add to Your Portfolio for 2021.  Buy & Hold Grade Let’s take a look at the Fed’s economic projection and see how the inflation and interest rate backdrop is likely to evolve. Want key ETF info delivered straight to your inbox? This is because Fed funds rate is expected to be 2.6% in 2019. Also, the Fed has probably held the idea of tightening off till December as the November meeting will happen right before the presidential election – a highly sensitive time. Argument in Favor of Potential Rally in U.S. Treasury. Enjoy free access to the POWR Ratings for all stocks and ETFs on the quote pages.



So, if the Fed does not make it in December, economic conditions will be called too soft to afford even a single 25-basis point hike in 2016 after a liftoff in December 2015.