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The Zacks Analyst Blog Highlights NiSource, American Water Works, Xcel Energy, Evergy and DTE Energy
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For Immediate Release
Chicago, IL – September 13, 2024 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: iShares U.S. Treasury Bond ETF (GOVT - Free Report) , iShares 20+ Year Treasury Bond ETF (TLT - Free Report) , iShares 10-20 Year Treasury Bond ETF (TLH - Free Report) , iShares 7-10 Year Treasury Bond ETF (IEF - Free Report) and Schwab Short-Term U.S. Treasury ETF (SCHO - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Here's Why Treasury ETFs Are Scaling New Highs
Treasuries have been witnessing strong momentum in recent weeks, buoyed by Fed rate cut speculations. The latest inflation data signals confirmed bets that the Fed will cut rates next week, pushing up Treasury ETFs to new highs. Notably, the 10-year yields dropped to a 30-month low of 6.82%, while 2-year yields are hovering near this year's low of 3.67%.
While the Treasury rally has been broad-based across various maturities, we have highlighted five from different ends of the yield curve that scaled to new highs in the latest trading session.
Expectations of rate cuts have been bolstered by continued signs of cooling inflation. The Consumer Price Index rose 2.5% year over year in August, down from the annual rise of 2.9% in July. This is the fifth straight annual drop and marks the slowest pace of annual growth since February 2021. Following the CPI report, investors’ bets for a 25-bps rate cut rose to 85% from 66% a prior day, as measured by the CME Fed Watch Tool (read: Sector ETFs Set to Explode as Fed Rate Cut Bets Gain Steam).
The bouts of recent data suggest that the U.S. economy is slowing down, leading investors to seek refuge in Treasury securities, perceived as safe-haven assets. The United States created 142,000 jobs in August, lower than the 160,000 anticipated by economists. Prior month job growth was also revised lower, indicating signs of continued cooling in the labor market.
Further, volatility is expected to continue in the weeks ahead, given geopolitical tensions and the looming November elections.
Let’s delve deeper into the above-mentioned ETFs:
iShares U.S. Treasury Bond ETF – 52-Week High: $23.65
iShares U.S. Treasury Bond ETF offers exposure to the broad U.S. Treasury market with treasuries ranging from 1-30-year maturities by tracking the ICE U.S. Treasury Core Bond Index. With AUM of $28 billion, it holds 201 bonds in its basket with a weighted maturity of 7.81 years and an effective duration of 6.09 years.
iShares U.S. Treasury Bond ETF charges investors 5 bps in fees per year and trades in an average daily volume of 13.2 million shares. It has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF – 52-Week High: $101.24
iShares 20+ Year Treasury Bond ETF provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Years Bond Index. It holds 46 securities in its basket and charges 15 bps in annual fees. iShares 20+ Year Treasury Bond ETF has an average maturity of 25.69 years and an effective duration of 16.91 years.
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $63.1 billion and has a Zacks ETF Rank #4 with a High risk outlook.
iShares 10-20 Year Treasury Bond ETF – 52-Week High: $111.51
iShares 10-20 Year Treasury Bond ETF offers exposure to longer-term U.S. Treasury bonds and follows the ICE US Treasury 10-20 Year Bond Index. iShares 10-20 Year Treasury Bond ETF holds 56 bonds in its basket, with average maturity and effective duration coming in at 17.28 years and 12.88 years, respectively.
iShares 10-20 Year Treasury Bond ETF has accumulated $8.4 billion in its asset base. It charges 15 bps in annual fees and has a Zacks ETF Rank #4 with a High risk outlook.
iShares 7-10 Year Treasury Bond ETF – 52-Week High: $99.15
iShares 7-10 Year Treasury Bond ETF targets mid-cap U.S. Treasury bonds and tracks the ICE US Treasury 7-10 Year Index. With AUM of $32.5 billion, iShares 7-10 Year Treasury Bond ETF holds 15 bonds in its basket with a weighted maturity of 8.56 years and an effective duration of 7.27 years.
iShares 7-10 Year Treasury Bond ETF charges investors 15 bps in fees per and has a Zacks ETF Rank #4 with a High risk outlook (read: 5 ETFs That Gained Investors' Love Last Week).
Schwab Short-Term U.S. Treasury ETF – 52-Week High: $48.97
Schwab Short-Term U.S. Treasury ETF offers exposure to publicly issued U.S. Treasury securities that have a remaining maturity of greater than or equal to one year and less than three years, are rated investment grade, and have $300 million or more of outstanding face value. SCHO follows the Bloomberg US Treasury 1-3 Year Index and holds 97 securities in its basket with an average maturity of 1.98 years and an effective duration of 1.88 years.
Schwab Short-Term U.S. Treasury ETF has AUM of $11 billion and charges 3 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Short-Term Treasury ETF Hits New 52-Week High).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights NiSource, American Water Works, Xcel Energy, Evergy and DTE Energy
For Immediate Release
Chicago, IL – September 13, 2024 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: iShares U.S. Treasury Bond ETF (GOVT - Free Report) , iShares 20+ Year Treasury Bond ETF (TLT - Free Report) , iShares 10-20 Year Treasury Bond ETF (TLH - Free Report) , iShares 7-10 Year Treasury Bond ETF (IEF - Free Report) and Schwab Short-Term U.S. Treasury ETF (SCHO - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Here's Why Treasury ETFs Are Scaling New Highs
Treasuries have been witnessing strong momentum in recent weeks, buoyed by Fed rate cut speculations. The latest inflation data signals confirmed bets that the Fed will cut rates next week, pushing up Treasury ETFs to new highs. Notably, the 10-year yields dropped to a 30-month low of 6.82%, while 2-year yields are hovering near this year's low of 3.67%.
While the Treasury rally has been broad-based across various maturities, we have highlighted five from different ends of the yield curve that scaled to new highs in the latest trading session.
Expectations of rate cuts have been bolstered by continued signs of cooling inflation. The Consumer Price Index rose 2.5% year over year in August, down from the annual rise of 2.9% in July. This is the fifth straight annual drop and marks the slowest pace of annual growth since February 2021. Following the CPI report, investors’ bets for a 25-bps rate cut rose to 85% from 66% a prior day, as measured by the CME Fed Watch Tool (read: Sector ETFs Set to Explode as Fed Rate Cut Bets Gain Steam).
The bouts of recent data suggest that the U.S. economy is slowing down, leading investors to seek refuge in Treasury securities, perceived as safe-haven assets. The United States created 142,000 jobs in August, lower than the 160,000 anticipated by economists. Prior month job growth was also revised lower, indicating signs of continued cooling in the labor market.
Further, volatility is expected to continue in the weeks ahead, given geopolitical tensions and the looming November elections.
Let’s delve deeper into the above-mentioned ETFs:
iShares U.S. Treasury Bond ETF – 52-Week High: $23.65
iShares U.S. Treasury Bond ETF offers exposure to the broad U.S. Treasury market with treasuries ranging from 1-30-year maturities by tracking the ICE U.S. Treasury Core Bond Index. With AUM of $28 billion, it holds 201 bonds in its basket with a weighted maturity of 7.81 years and an effective duration of 6.09 years.
iShares U.S. Treasury Bond ETF charges investors 5 bps in fees per year and trades in an average daily volume of 13.2 million shares. It has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF – 52-Week High: $101.24
iShares 20+ Year Treasury Bond ETF provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Years Bond Index. It holds 46 securities in its basket and charges 15 bps in annual fees. iShares 20+ Year Treasury Bond ETF has an average maturity of 25.69 years and an effective duration of 16.91 years.
TLT is one of the most popular and liquid ETFs in the bond space, with AUM of $63.1 billion and has a Zacks ETF Rank #4 with a High risk outlook.
iShares 10-20 Year Treasury Bond ETF – 52-Week High: $111.51
iShares 10-20 Year Treasury Bond ETF offers exposure to longer-term U.S. Treasury bonds and follows the ICE US Treasury 10-20 Year Bond Index. iShares 10-20 Year Treasury Bond ETF holds 56 bonds in its basket, with average maturity and effective duration coming in at 17.28 years and 12.88 years, respectively.
iShares 10-20 Year Treasury Bond ETF has accumulated $8.4 billion in its asset base. It charges 15 bps in annual fees and has a Zacks ETF Rank #4 with a High risk outlook.
iShares 7-10 Year Treasury Bond ETF – 52-Week High: $99.15
iShares 7-10 Year Treasury Bond ETF targets mid-cap U.S. Treasury bonds and tracks the ICE US Treasury 7-10 Year Index. With AUM of $32.5 billion, iShares 7-10 Year Treasury Bond ETF holds 15 bonds in its basket with a weighted maturity of 8.56 years and an effective duration of 7.27 years.
iShares 7-10 Year Treasury Bond ETF charges investors 15 bps in fees per and has a Zacks ETF Rank #4 with a High risk outlook (read: 5 ETFs That Gained Investors' Love Last Week).
Schwab Short-Term U.S. Treasury ETF – 52-Week High: $48.97
Schwab Short-Term U.S. Treasury ETF offers exposure to publicly issued U.S. Treasury securities that have a remaining maturity of greater than or equal to one year and less than three years, are rated investment grade, and have $300 million or more of outstanding face value. SCHO follows the Bloomberg US Treasury 1-3 Year Index and holds 97 securities in its basket with an average maturity of 1.98 years and an effective duration of 1.88 years.
Schwab Short-Term U.S. Treasury ETF has AUM of $11 billion and charges 3 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Short-Term Treasury ETF Hits New 52-Week High).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.