GIY
Guggenheim Enhanced Core Bond ETFNYSEARCA
GIY is defunct since March 9, 2014. Lack of investor interest
  • Apr. 23, 2014, 12:51 PM
    • The iShares Yield Optimized Bond ETF (BYLD) will give investors to a broad array of fixed income securities listed in the U.S.
    • Unlike its wildly popular Core Total U.S. Bond Market ETF (AGG), according to the recently updated SEC filing BLYD will offer exposure to both investment grade and non-investment grade securities.
    • Other total U.S. bond ETFs: BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, ISTB, GBF, GVI, MINC, FWDB, GIY
    | Apr. 23, 2014, 12:51 PM
  • Apr. 2, 2014, 2:55 PM
    • "The reported 'great rotation' out of fixed-income seems to have been short-lived," writes Brian Rehling, chief fixed-income strategist at Wells Fargo Advisors. Short of an inflation scare - not on the horizon at the moment - he doesn't see investors exiting the sector en masse in the coming years.
    • Worried about volatility and the fact that most bond funds and ETFs never mature (target-date ones don't)? Rehling suggests buying high-quality paper directly and creating bond ladders which allow cash to be received and then put back to work at potentially higher rates.
    • ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, GVI, GBF, ISTB, MINC, FWDB, GIY
    | Apr. 2, 2014, 2:55 PM
  • Mar. 26, 2014, 3:06 PM
    • Private pension funds and insurance companies - their equity exposure rising along with stock market - have returned to the long end of the curve this year to rebalance their portfolios, says JPMorgan Private Bank CIO Richard Madigan, helping to support prices as Fed dials back QE.
    • Madigan didn't and doesn't expect a "great rotation" from fixed income to equities, instead arguing the boost in equity inflows has come and will come at the expense of too-high cash balances. Why own fixed income? Bonds continue in their role of buffering other investment risk in portfolios.
    • "In the middle of everything lies opportunity," said Einstein. We're mid-cycle in the global recovery, says Madigan, maybe frustrating those late to invest, but still offering plenty of opportunity.
    • ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, DI, GVI, ISTB, GBF, LDUR, MINC, FWDB, AGND, GIY, AGZD
    | Mar. 26, 2014, 3:06 PM | 1 Comment
  • Mar. 6, 2014, 3:08 PM
    • Typically making up 20-25% of Berkshire Hathaway's (BRK.A, BRK.B) insurance units' investment holdings ($186.8B AUM), fixed-income assets dropped to just 14% as of the end of the year. Stocks account for $114.8B of the holdings. Cash of $48.2B is up from $47B a year ago and $30.6B at the end of 2009, and of the fixed-income the units do hold, there's a decided tilt away from duration.
    • Investment income in the insurance units was $3.7B in 2013, but this could drop as nice-yielding deals with Mars, Inc, Swiss Re, Goldman, and GE wound down and Buffett has only been able to replace a portion of that money with equally lucrative plays (i.e., Heinz). “Investment opportunities currently available will likely generate considerably lower yields ... We continue to hold significant cash and cash equivalents earning very low yields.”
    • Broad fixed-income ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, GVI, ISTB, GBF, DI, LDUR, MINC, FWDB, GIY, AGND, AGZD
    | Mar. 6, 2014, 3:08 PM | 19 Comments
  • Mar. 4, 2014, 8:21 AM
    • Permanently on the whiteboard of Pimco's Investment Committee boardroom is its concentric circles of asset classes, with the Fed Funds rate occupying the center and stocks and real estate far on the outside. "Change the price of credit at the center and you change the price of assets at the outer extremities," writes Bill Gross.
    • Risk assets may be high-priced, but they're not necessarily mis-priced as long as ZIRP continues. Key, says Gross, drawing on Yeats' "Second Coming," is whether the center holds, i.e. can investors be convinced of the Fed's credibility as it shifts from a quantitative to qualitative assessment of whether to tighten policy.
    • "Artificial prices will not be mis-priced if circling falcons can be convinced of the efficacy of qualitative forward guidance. We believe that will be the case. Carry trades, then, in numerous forms should be profitable."
    • Redemptions from Gross' Total Return Fund (ETF version: BOND) slowed to $1.6B in February, the slowest pace of outflows since the bond market blew up last May.
    • Broad fixed-income ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, GVI, ISTB, GBF, MINC, FWDB, GIY, AGND, AGZD
    | Mar. 4, 2014, 8:21 AM
  • Feb. 13, 2014, 1:54 PM
    • The Guggenheim Enhanced Core Bond ETF (GIY) is scheduled to close on March 7th after 4 years of trading.
    • Competing with the iShares Core Total U.S. Bond Market ETF (AGG) and Vanguard's Total Bond Market ETF (BND) has proven an uphill climb; both have accumulated $15 billion and $19 billion in assets respectively while GIY has only $5 million.
    • Other broad Bond ETFs: BOND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, GVI, ISTB, GBF, MINC, FWDB
    | Feb. 13, 2014, 1:54 PM
  • Jan. 16, 2014, 3:14 PM
    • "We actually saw institutions selling equities and buying bonds, especially the long end of the curve," says BlackRock (BLK +1.7%) CEO Larry Fink, making the rounds after a big earnings report this morning. Institutions with big profits in stocks are asking themselves if they need such large exposure to equities, he continues. "The answer was that they need to be a little more balanced."
    • Fink's comments square with other reports of a rotation back into fixed income as corporations all of a sudden find their pension funds fully funded thanks to the market rally.
    • Within fixed income, Fink sees another rotation - and that's out of paper pegged to something like the Aggregate Bond Index (AGG +0.2%) and into "unconstrained" bond funds - not tied to the long end, but instead trying to grab yield without adding duration.
    • Related ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, ISTB, GVI, GBF, FWDB, MINC, HOLD, GIY, AGND, AGZD
    • BlackRock earnings coverage
    | Jan. 16, 2014, 3:14 PM
  • Jan. 13, 2014, 5:48 PM
    • Active ETF sponsor, AdvisorShares, announced today that the Sage Core Reserves ETF (HOLD) will be open for trading Wednesday morning.
    • HOLD will be invested in a broad base of high quality, fixed-income securities, in an effort to not only maintain steady income, but to manage risk and duration.
    • “We believe HOLD delivers a compelling investment solution with the benefits of a liquid, transparent and efficient actively managed ETF by leveraging Sage’s well-established track record and expertise as a fixed income manager” said Noah Hamman, chief executive officer of AdvisorShares in an earlier statement.
    • Other total market fixed income ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, GVI, GBF, ISTB, FWDB, MINC, GIY
    | Jan. 13, 2014, 5:48 PM
  • Jan. 13, 2014, 12:34 PM
    • Maybe supportive of fixed income this year are pension plans - which find themselves as fully funded as they've been in a long time - shifted money out of stocks and into bonds in Q3 at the fastest pace since 2008.
    • Ford was among those locking in equity gains, boosting its debt investments to 70% last year from 55% in 2012, and is now looking to raise the level to 80%. Ryder System is increasing its debt allocation to 45% from 30%, says Treasurer Dan Susik. "Pension plans don’t want to give back the gains that essentially took over five years to accumulate," says Millman's Zorast Wadia.
    • Treasurys are having another good day, the yield on the 10-year off 2 bps to 2.84%.
    • Broad fixed-income ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, ISTB, GVI, GBF, FWDB, MINC, GIY, AGND, AGZD
    | Jan. 13, 2014, 12:34 PM | 1 Comment
  • Jan. 9, 2014, 8:47 AM
    • "If you’re on the wrong end of an interest rate teeter totter headed up, it makes you wonder why anyone would own bonds or at least why anyone would own longer-term bonds," writes Bill Gross (BOND) after closing out a rough 2013. "That question and its answer are the key for 2014."
    • Stop worrying so much about that number coming out on the first (occasionally 2nd) Friday of each month, he says, as inflation, not unemployment will be the critical statistic for gauging Fed policy going forward (the PCE is release around the 20th each month). There will be no policy hike until both unemployment and inflation breach their thresholds, says Gross, and they're not even thresholds; "they're forks in the road that may, or may not lead in a different direction." At the moment, annualized PCE inflation of 1.2% is nowhere near the target of 2%.
    • Gross isn't calling for a bond bull market, but - if he's right about inflation - it will be realistic to expect positive fixed income returns in 2014.
    • Related ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, PLW, GOVT, LAG, SAGG, ILTB, ISTB, TRSY, GVI, GBF, FWDB, MINC, GIY, AGND, AGZD
    | Jan. 9, 2014, 8:47 AM
  • Jan. 7, 2014, 3:35 PM
    • Bond mutual funds and ETFs had a record $86B in withdrawals last year, according to TrimTabs, the first net outflow since 2004, and topping the record $62B amid the bond market tumble in 1994.
    • Over the last seven months of 2013, bond funds saw $196B in withdrawals - a whopping figure, but coming against $1.2T in inflows from 2009-2012.
    • Stock funds saw inflows of $352B, breaking the $324B record set in 2000.
    • Related ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, ISTB, GVI, GBF, FWDB, MINC, GIY, AGND, AGZD
    | Jan. 7, 2014, 3:35 PM | 6 Comments
  • Jan. 7, 2014, 1:12 PM
    • The future looks like the recent past to Citi Private Bank, which - in its 2014 outlook - says stocks have room to run, but beware fixed income. Citi's projections are based on its Adaptive Valuation Strategies which looks at long-term valuation averages to gauge what an asset might offer in the coming decade.
    • "Our long-term AVS return estimates for government, investment-grade corporate and high-yield bonds are only 1.9%, 3.4% and 2.9% respectively. The recent rise in bond yields has helped emerging markets where estimated returns have now risen to 5.1%."
    • Don't toss away fixed-income entirely, says Citi, but instead cut duration exposure, look for credit risk instead of rate risk, diversify into MLPs, REITs, and dividend stocks, and favor floating-rate investments.
    • Broad fixed-income ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, ISTB, GVI, GBF, FWDB, MINC, GIY, AGND, AGZD
    • Broad equity ETFs: PRF, VUG, VTV, SDOG, VV, SCHX, MGK, DEF, SCHG, SCHV, PWV, MGV, FLAG, DOD, JKD, FEX, IWY, EQL, JKE, EZY, PWB, IWX, FTC, EEH, JKF, SPXH, TRSK, SFK, PXLC, FWDD, RWG, FNDX, PXLV, ALTL, GVT, PXLG, IELG
    | Jan. 7, 2014, 1:12 PM
  • Dec. 19, 2013, 10:20 AM
    • The WisdomTree (WETF) Barclays U.S. Aggregate Bond Zero Duration Fund (AGZD) has a 0.23% expense ratio, and the U.S. Aggregate Bond Bond Negative Duration Fund (AGND) has expenses of 0.28%.
    • The WisdomTree BofA Merrill Lynch High Yield Bond Zero Duration Fund (HYZD) has a 0.43% expense ratio, and the High Yield Bond Negative Duration Fund (HYND) costs 0.48%.
    • Also launched is a play on rising rates in Japan, the WisdomTree Japan Interest Rate Strategy Fund (JGBB) which is set up to short JGBs while hedging with a long position in U.S. T-bills. The fund will also partially hedge against changes in the yen's value. The expense ratio is 0.5%.
    • Broad fixed income ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, ISTB, GVI, GBF, MINC, FWDB, GIY
    • High yield ETFs:  HYG, JNK, HYS, HYLD, SJNK, PHB, SJB, ANGL, UJB, XOVR, QLTC, SHYG
    • JGB ETFs: JGBS, JGBD, JGBL, JGBT
    | Dec. 19, 2013, 10:20 AM
  • Dec. 11, 2013, 1:04 PM
    • Investors have pulled $70.7B from bond mutual funds YTD, according to TrimTabs - that's more than the $62.5B pulled amid the serial Fed rate hikes and bond market rout of 1994.
    • Since June alone, investors have pulled $164.5M out of bond funds, and three of the four largest monthly outflows ever have occurred this year.
    • Broad fixed-income ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, ISTB, GBF, GVI, MINC, FWDB, GIY
    | Dec. 11, 2013, 1:04 PM | 6 Comments
  • Dec. 9, 2013, 3:56 PM
    • Making a tough 2013 even worse for bond funds is tax-loss selling. "There's not a whole lot of other losses out there," explains Tim Courtney, taking note of the approximate 25% gain the broad stock market.
    • "Every year we see investors running from bad performance when they set their new asset allocations," says S&P CapitalIQ's  Todd Rosenbluth. "Investors want their money to work for them, and bond funds certainly haven't been delivering like they used to."
    • Previous: Investors are cutting fixed income allocations and upping equity at what may be exactly the wrong time.
    • Broad fixed-income ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, LAG, SAGG, ILTB, ISTB, GBF, GVI, FWDB, MINC, GIY
    | Dec. 9, 2013, 3:56 PM
  • Dec. 3, 2013, 12:30 PM
    | Dec. 3, 2013, 12:30 PM | 3 Comments
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