SGOV Stock Recent News

SGOV is still a great option for fixed-income investors to wait for a good time to invest in longer-term bonds. The market was too optimistic about rate cuts in 2024, making SGOV an attractive choice. SGOV offers a stable yield and protection against capital depreciation as rate cut predictions fluctuate.

Cash has reemerged as a valuable asset class, earning a healthy spread over inflation. Ultrashort bond and treasury ETFs, such as iShares 0-3 Month Treasury Bond ETF, have become popular as their dividend rates continue to rise. SGOV offers a balance of price stability and yield, making it a good option for earning interest while preserving principal.

Big tech earnings and the Fed meeting dominated the headlines, with the S&P 500 and Nasdaq finishing the week up. META was the winner this earnings season, with shares climbing 19.2% after a strong quarter.

The Dividend Harvesting Portfolio has generated an 8.51% return on invested capital and produces a weekly dividend income. The portfolio is increasing its cash reserves and plans to purchase the iShares 0-3 Month Treasury Bond ETF as a proxy for cash. SGOV was chosen due to its stability, modest yield, and low expense ratio compared to other Treasury bond ETF options.

With an inverted yield curve and a lackluster start for the year for stocks, it is a good time to check whether we are swimming naked. The article provides a simple clear-cut explanation of the bond market and bonds. Long-term bonds might be risky for some, while short-term bonds might not capture the true opportunity of having an inverted yield curve.

Inflation is coming down, but at a slower rate than before. The market expects lower interest rates and sees no possibility of rate increases. The tightening of financial conditions could indeed lead to a sharp decline in the economy, causing bonds to rally further.

Conservative investors are benefiting from the current macro environment, with cash-like funds offering 5%+ yields. Cash investments have not been profitable in the past decade, but higher interest rates are making them more attractive now. I utilize two funds for my "dry powder" investments, with varying levels of risk and liquidity.

The rise of income-driven investing has created immense demand for high-dividend investments, often at the cost of added risk. Since the risk-free rate is 5.25%, income-driven investors have much better options than years ago to earn a good income without compromising on risk. Extreme US debt levels suggest that inflation and interest rates may remain elevated over the coming decade, likely with interest rates above inflation.

The Volatility Index is used by investors to track the short-term direction of the stock market. The VIX has shown a correlation with the S&P 500 during past recessions, but its effectiveness as a forward indicator is uncertain. Factors such as rising Treasury yields, increasing government debt, and the dumping of US bonds by adversaries and allies pose risks to the market.

For investors seeking momentum, Ishares 0-3 Month Treasury Bond ETF SGOV is probably on the radar. The fund just hit a 52-week high and is up 0.73% from its 52-week low price of $99.96/share.