Bonds market have been on a roller coaster ride in recent weeks, with the New York Federal Reserve President John Williams saying the fight against inflation could be complicated by a rebound in global growth that increases demand for goods while supply-chain bottlenecks persist [1,2,3]. The stock market has been relatively stable in comparison, with the Dow Jones Industrial Average gaining 0.39% and the Nasdaq Composite index declining 0.58% [2]. Despite the recent volatility, the Fed remains optimistic about the economy and believes the fight against inflation is still in its early stages [2].
References:
[1] Bonds & Rates – CNBC [2] Bonds – MarketWatch [3] Rates & Bonds Market Headlines | Breaking Stock Market NewsToday’s ETF markets showed mixed results with some ETFs having strong gains while others declined.
According to [1], The ETF Overview page provides a snapshot of current market activity for the U.S. Exchange Traded Funds market. The widget shows Mutual Funds with the highest and lowest year-to-date percent change. Today’s ETF Performance Leaders Shows the top Exchange Traded Funds [2] ranked by highest percent change (Advances) and lowest percent change (Declines).
Furthermore, Today’s ETF Price Surprises [2] Highlights ETFs that have unusually large price movement relative to their usual pattern, meaning ETFs that are seeing breakouts or abnormally large bull or bear moves. ETF Trading Signals provides links to ETFs that are at a 100% Buy or a 100% Sell Opinion. With 591 ETFs traded on the U.S. markets, Total Market ETFs have total assets under management of $1,585.21B [3], and the average expense ratio is 0.52%.
References:
[1] Today’s ETFs, Quotes, Charts and News – Barchart.com [2] Top ETFs US List | Screener – Yahoo Finance [3] 591 Total Market ETF Reports: Ratings, Holdings, AnalysisThe S&P 500 Index had a 5-day performance of -0.28% as of today
According to CNBC, the index closed at 4,517.57 on February 19th, 2021 [2]. The index has seen a 2.68% growth in the past month and a 2.87% growth in the past 3 months [1]. According to Barron’s, the S&P 500 Index has seen a 6.24% growth year-to-date [3]. FactSet provides real-time stock quotes, comprehensive quotes and volume for all markets, as well as analyst estimates and fundamental company data [3].
References:
[1] S&P 500 Index Overview – SPX [2] SPX: S&P 500 Index – Stock Price, Quote and News [3] S&P 500 Index Overview (SPX)FAQs about investments
If you’re looking for ETFs to invest in, the Vanguard Total Stock Market ETF (VTI)[1], the SPDR S&P 500 ETF (SPY)[1], and the iShares Core MSCI EAFE ETF (IEFA)[1] are three of the most popular and reliable options. These funds provide broad exposure to the markets and are suitable for long-term investors.
Other funds that may be of interest include Vanguard High Dividend Yield Index ETF (VYM)[2] and Schwab U.S. Dividend Equity ETF (SCHD)[2]. For investors seeking more specialized exposure, ETFs such as the ARK Innovation ETF (ARKK)[3], ARK Fintech Innovation ETF (ARKF)[3], and VanEck Rare Earth and Strategic Metals ETF (REMX)[3] may be worth exploring.
References:
[1] Top 3 ETFs for Long-Term Investors – Investopedia
[2] Best ETFs For February 2023 | Bankrate
[3] 7 Best ETFs for February | Investing – US News Money
Investing in Treasury bonds can be a smart decision for those looking for a low-risk investment with a lower return. The best Treasury ETFs based on 1-year trailing total returns are USFR, TFLO, and SGOV [2]. USFR, which stands for US Financials ETF, has a 1-year return of 10.10%.
TFLO, which stands for iShares Treasury Floating Rate Bond ETF, has a 1-year return of 1.90%. SGOV, which stands for SPDR Portfolio Long Term Treasury ETF, has a 1-year return of 5.76%. These bonds are generally considered to be a good investment, as they offer stability and liquidity with a low return [3]. However, it is important to keep in mind that yield and price move in opposite directions, so rising yields mean falling prices and vice versa [1]. As such, it is important to understand your own risk tolerance and investing goals before making a decision on which bond to invest in.
References:
[1] 9 Best Long Government Funds – US News Money
[2] Best Treasury ETFs – Investopedia
[3] Guide to Treasury Bonds – NerdWallet
