The Arrow Dow Jones Global Yield ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the global bond market as defined by the Dow Jones Global Composite Yield Index.
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Friday, May 24, 12:45 PM
Multi-asset income ETFs are here to stay, writes Paul Britt, as Guggenheim's CVY crosses $1B in AUM. It's been around since 2006, but a new entrant, MDIV has pulled in $440M in less than a year. These income funds have no mandate in their search for yield and roam across dividends (DVY), high-yield (HYG), REITs (IYR, VNQ), and MLPs (AMJ) as necessary. One drawback is their somewhat high expense ratios - in the 60-80 bp range, compared, for example, to DVY at 40 bps. Other M-A ETFs: INKM, IYLD, GYLD, HGI.
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Thursday, May 23, 10:12 AM
The ProShares High Yield-Interest Rate Hedged ETF (HYHG) starts trading today joining the likes of HYLS and THHY. The fund will short Treasurys to offset its exposure to high-yield corporate debt and comes with an expense ratio of 0.50% - significantly lower than THHY (1.45%) and HYLS (1.19%).
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Friday, March 22, 10:25 AM
The recently announced Market Vectors Treasury-Hedged High Yield Bond ETF THHY starts trading today. The fund invests in high-yield bonds, but hedges interest rate risk by shorting Treasurys. It comes with a high expense ratio of 1.45% as compared to similar funds HYLS (1.19%), GYLD and MINC (0.75%).
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Thursday, February 28, 4:39 PM
Wednesday saw First Trust launch the first ever Long/Short fixed income strategy ETF, HYLS. The actively managed fund will invest at least 80% of its assets in sub-investment grade corporate debt while shorting multiple fixed income asset classes and credit grades with its remaining assets. HYLS charges 1.19%. In contrast, long-only multi-asset income ETF GYLD charges 0.75% while fund-of-funds income-focused IYLD charges 0.60%.
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Wednesday, February 27, 5:08 AM
Argentina is due to appear in a New York Appeals Court today, when it will try to persuade the judge to reverse a ruling that it pay $1.3B to investors that refused to accept the country's debt restructuring after it defaulted 2001. The case could "create unrest in the credit markets and result in cascades of litigation," says Bank of New York Mellon (BK).
3 Comments[Financials, Global & FX, Top Stories]
Wednesday, January 2, 4:47 AM
The amount of debt that the G7 and four of the BRIC nations will need to refinance this year will fall by $220B to $7.38T, Bloomberg calculates, although the amount the U.S. will have to cover will increase to $2.9T from $2.6T. Overall government debt returned 4.5% on average last year, led by a 78% gain on Greek bonds. However, yields on major sovereign debt are expected to remain low.
Comment![Global & FX, U.S. Economy]
Friday, December 28, 2012, 4:08 PMCNBC provides a list of the worst financial predictions of 2012. Among them: Facebook would turn in a great IPO; China would see a hard landing; Greece would leave the eurozone; the U.S. bond bubble would burst, and the U.S. would see a double-dip recession. Among the reasons Cullen Roche thinks the predictions flopped: Europe is too interdependent to let Greece walk, the U.S. government has no insolvency risk, and "everyone wants to predict the next big financial crisis."
Comment![U.S. Economy, Global & FX]
Friday, August 10, 2012, 9:05 AM
What crisis? Europe's corporate bond market is cruising, investment-grade euro-denominated bonds returning 8.9% YTD. Spreads remain wide - more than 200 bps to sovereign bonds vs. 50 bps pre-crisis - but there are good reasons for this. The search for yield continues, but how much upside is left?
Comment![Global & FX]
Friday, June 8, 2012, 12:31 PM
Dividends may not be a free lunch, but WisdomTree research shows the highest quintile of payers outperformed the S&P 500 by 2.5%/year over the last half century, and with less beta. Even the 2nd highest quintile performed 2% better/year than the S&P. (a sampling)
Comment![Quick Ideas]
Thursday, June 7, 2012, 3:46 PM
Seeing a huge surge of interest in "esoteric" investments (MLPs to name one) paying fat yields, one financial adviser sees the instruments approaching bubble territory. No such froth is evident in plain-vanilla dividend payers, VIG lagging the SPY for the last 2 years.
Comment![Quick Ideas]
Saturday, June 2, 2012, 10:00 AM
Pass on the "ice cream" and focus on the "spinach," writes Brendan Conway, noting the S&P's high-yield stocks are trading at their greatest premium to the steady dividend growers in at least 20 years. High yields may presage low future dividend growth, make the stock more susceptible to rising interest rates, and will get hurt more in event of a tax hike. Possible picks: VIG, SDY.
2 Comments[Quick Ideas]
Tuesday, May 29, 2012, 3:09 PM
Investors in a defensive mood can always turn to dividend stock plays, writes Russ Koesterich. Indices of dividend stocks have volatility of just 80% or less than the S&P 500. And don't forget emerging markets, where dividend indices also exhibit lower volatility than the broad markets in which they reside.
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