US Treasury 2 Year Note ETF: I Will Follow This New 2-Year Treasury ETF Closely (UTWO)

UTWO is about as easy to understand as any ETF. Or is it? On the surface, it just buys the 2-year US Treasury Note. That’s it. However, as opposed to buying and holding that bond until it matures in 2 years, UTWO swaps out its holding whenever a new 2-year bond is issued. Given the unique moment in history for the bond market, I find this ETF to be a potentially opportunistic tool for contemporary income investors.

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I Bonds Vs. TIPs: Which High-Yield, Inflation-Protected Security Is Best For 2023? (TIP)

Federal Reserve hikes have led to higher interest rates on most bonds, and higher dividend yields on most bond funds, including those focused on TIPs. SCHP is a simple TIPs index ETF and offers investors a strong, inflation-protected 6.9% dividend yield. SCHP currently yields more than an I Bond, the widest spread in decades

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