Amid rising inflation fears, fixed-income investors are increasingly shifting to short-term Treasury ETFs. These funds offer steady yields with lower interest rate risk compared to long-term bonds. The recent election of President Donald Trump has intensified these concerns, as his proposed tax cuts and tariffs could push up prices and add pressure to inflation, sparking sell-offs in the long-term bond market.Long-Term Treasury Sell-OffAfter Trump’s win, long-term Treasury ETFs like the iShares 20+ Year Treasury Bond ETF (TLT) dropped nearly 3%, reflecting market concerns over potential inflation. Many investors are moving to short-term Treasury ETFs to reduce risk and protect against inflation-driven volatility.Strong Inflows into Short-Term Treasury ETFsEven before the election, short-te

In March 2022, the Fed started raising rates and seemed to successfully curb inflation, leading to a pause in hikes last July. Recently, Chairman Powell indicated that it's time to adjust monetary policy. CME suggest a 71% chance of a 25-bps cut and a 29% chance of a 50-bps cut in September.Observers believe that falling inflation and a weakening job market are driving the Fed to adjust policy. Experts think the Fed's new round of interest rate cut cycle is likely to be a relatively mild pre-interest rate cut, rather than a bailout for a serious recession or major external shock.When interest rates inevitably start to fall, we can consider the following investments:1.High-Yield Investments Conservative, income-focused investors might lock in current high rates by buying certificates of dep

In the midst of recent market turmoil, investors are facing significant challenges. Economic uncertainty, policy changes, and global events can all exert pressure on investment portfolios. In such an environment, finding investment options that can remain steady amidst market fluctuations is crucial. Here are five top ETFs that can help diversify risk, stabilize returns, and guide you through these turbulent times.iShares MSCI USA Min Vol Factor ETF (USMV)A Steady Choice to Reduce VolatilityUSMV focuses on stocks in the U.S. market with lower volatility, aiming to provide relatively stable investment returns. Compared to other high-volatility stocks, the companies in USMV tend to perform more steadily during market upheavals. For investors seeking to maintain lower risk in uncertain market

On Friday (29 Mar), the Bureau of Economic Analysis released the Federal Reserve’s preferred measure of inflation, the core personal consumption expenditures price index, prices in the U.S. rose sharply again in February, reinforcing the view that inflation might not slow as much in 2024 as previously expected. The headline PCE index rose 0.3% in February,that is below the 0.4% forecast of economists polled by The Wall Street Journal. The annual rate crept up to 2.5% in February, from 2.4% in the previous month. This data comes as this year (2024)'s economic indicators show a resilient economy, especially the labor market, with hotter-than-expected inflation. Looks like the central bank is taking a wait-and-see approach to lowering interest rates as it assesses whether progress on reduci

The article comes from ETF.com.A sleepy corner of the financial markets has suddenly become the center of attention. Treasury bonds aren’t known for being particularly exciting, but that has changed over the past year as their yields have risen to levels last since a decade and a half ago. For investors who want to get in on the excitement—or who just want to take advantage of the current high yields—there’s perhaps no better way to do so than with exchange-traded funds.  What Are Treasury Bonds? Treasury bonds are debt securities issued by the U.S. federal government that are considered to be “risk free.” An investor in a Treasury bond will get paid back in full at the time of maturity. “Treasury bonds” is an umbrella term that refers to several different flavors