(GKE)

All Comments on GKE

  • commenter
    Lisa
    May 29 05:13 PM
    Ameristock to Close Five Failing Bond ETFs [view article]
    The ETF shake-out begins. Too many index ETFs are insufficiently differentiated. And some (GLD and IAU; SPY and IVV) are identical. Reply
  • commenter
    yahoo user
    g1s
    Apr 28 05:20 PM
    Treasuries: Profiting From the Bear's Next Victim [view article]
    TO atauber:
    that means ALL rates will go up, not just inter bank.
    mortgages are keyed off the 10year treasury.
     Reply
  • commenter
    adan
    Apr 28 11:20 AM
    My Website
    Treasuries: Profiting From the Bear's Next Victim [view article]
    that's a lot of if's, if $ goes into stocks, if inflation wins over deflation, if the regular guy in 401's stillis prohibited (by lack of choice) of directly buying his or her own treasuries, if the current rally's not a bear market counter rally

    not saying all, or most, or some, of those if's might just go ahead and happen, but for anyone in their late 40's, 50's, 60's, and up, is that a risk worth banking on?

    is that what investment banks and the fed are hoping? that we'll "give up" and pile back into stocks and hope and a whim?

    why not just back-stop us the way the market's been backstopped?

    that'd be interesting

    anyway, 'preciate your views; always good to hear different from what one thinks, so's to think it through again :-)
    Reply
  • commenter
    buyitcheap
    Apr 28 10:25 AM
    Treasuries: Profiting From the Bear's Next Victim [view article]
    Direxion funds also has a 2.5X Inverse Bear & Bull for the 10 year note. Just wish there were such an ETF. Reply
  • commenter
    atauber
    Apr 28 08:52 AM
    Treasuries: Profiting From the Bear's Next Victim [view article]
    no that has to do with rates have to pay to the bank Reply
  • commenter
    dieuwer
    Apr 28 08:34 AM
    Treasuries: Profiting From the Bear's Next Victim [view article]
    IF the treasury market plunges it automatically implies that rates will go up. What will that mean for the housing market? Total collapse? Reply
  • commenter
    Ames
    Tiedeman
    Apr 27 05:20 PM
    My Website
    ETF Fund Revenues: A View from the Bottom [view article]
    Nice data! Thanks! Reply
  • commenter
    SeekingAlpha
    Editors
    Apr 06 05:22 AM
    My Website
    General Discussion on GKE
    Is this a buy or a sell? Reply
  • commenter
    Long-Short
    Guy
    Jan 26 05:12 PM
    Which Treasury Bond Should I Buy? [view article]
    Any thoughts on (a) TIPS and (b) the new foreign treasury bond ETF (BWX)? Reply
  • commenter
    Will
    McClatchy
    at
    ETFzone.com
    Jul 10 09:23 PM
    My Website
    Response to Roger Nusbaum on Bond ETFs [view article]
    Agreed. The yield bounces around with GKD, but at least the interest rate risk profile remains the same. It remains a long bond and does not morph into a shorter term bond. Unfortunately for some of your clients, when the long bond expires, they will have to reinvest and then they could be in trouble unless they plan on living only so many years. Reply
  • commenter
    Will
    McClatchy
    at
    ETFzone.com
    Jul 10 09:19 PM
    My Website
    Response to Roger Nusbaum on Bond ETFs [view article]
    If a bond fund owns 10-year bonds, you will certainly "get back par" in an economic sense even if the fund sells the bond before maturity. That is because the person who buys the bond buys to the right to "get back par". There is no economic penalty to a bond for selling, all else being equal. Reply
  • commenter
    Roger
    Nusbaum
    Jul 10 06:49 PM
    My Website
    Response to Roger Nusbaum on Bond ETFs [view article]
    Variable rate...If you buy GKD today you have no idea what it will yield at any point in the future. The yield goes up and down in the future; variable so to speak.

    In trying to manage a portfolio for growth and income something that lessens predictability of income stream is less desirable.

    Your GKD is the winner comment doesn't really apply or appeal in the real world of people living off their portfolios which is who my clients are and what we all will probably need to do at some point.     Reply
  • commenter
    Will
    McClatchy
    at
    ETFzone.com
    Jul 10 06:18 PM
    My Website
    Response to Roger Nusbaum on Bond ETFs [view article]
    What's with the variable rate/variable price stuff? Funds which own Treasuries act like Treasuries. Treasuries are fixed rate instruments. Their price fluctuates with interest rates, inversely. Reply
  • commenter
    Will
    McClatchy
    at
    ETFzone.com
    Jul 10 06:16 PM
    My Website
    Response to Roger Nusbaum on Bond ETFs [view article]
    Ssorry about the mispelling, Roger.

    I am happy to be in the minority. ETFzone considers its main mission to dispelling myths regarding ETFs. Let's follow your example in your blog:

    "If the yield on the ten year was 6% and you thought that was pretty good, you risk getting a lower rate with GKD if the yield in the marketplace goes down. That which might yield 6% today could yield 4% next year. If you buy an individual treasury, your yield will be whatever it was when you bought it -- which makes managing this portion of your portfolio much easier."

    After one year GKD, which maintains a constant 10-year average maturity, still has a 10-year maturity. But the individual Treasury is now equivalent to a 9-Year maturity because it has 9 years left. If as you say the marketplace yield (essentially interest rate) for a 10-year bond goes from 6% to 4%, then the value of both holdings will rise, because both entitle the holder to many more years of 2% higher-than-market interest. The longer maturity GKD will get a bit more of a boost from its extra year. So actually, in your example GKD is the winner at that moment in time. Each month at Treasury auction as GKD turns over its holdings for new 10 year Treasuries, GKD takes its winnings (or losses) and plows them into the next batch.

    I have no idea what you mean by "variable rate aspect to the treasury portion of a fixed income portfolio". GKD is not a variable rate product. It contains only fixed rate 10-year Treasuries. It does turn over its portfolio to maintain that 10-year duration, but that is not a variable rate as most people understand it.

    My main point is that investors need to be clear whether they are maintaining a portfolio with set asset allocation targets, or if they are saving for a balloon payment or steady income over a known period. Most pension funds asset allocate with set targets, as do most investors saving for retirement. Clearly if one is saving for balloon payments such as college education or if one has set income requirements over a known period and no longer, then an individual bond is perfect. But when you essentially say that "average" investors should not asset allocate with bonds, I worry about how that advice will be taken.     Reply
  • commenter
    basile
    Jul 10 02:55 PM
    Response to Roger Nusbaum on Bond ETFs [view article]
    I think it is the difference between managing for income and managing for total return. Bond funds/ETF's make it easy to alter duration, credit risk etc. That is if you are manging to a total return mandate. If you don't have a specific time horizon at the end, you are only going to roll that treasury into something else. I agree with Will. Reply
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