Time to Invest in Cash-Like ETFs?

Zacks08-14

Wall Street has been struggling to find a footing in recent weeks due to overvaluation concerns in the technology sector and economic slowdown worries. Additionally, geopolitical conflict and the ...

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Additionally, geopolitical conflict and the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/time-invest-cash-etfs-160100840.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://finance.yahoo.com/news/time-invest-cash-etfs-160100840.html","article_id":"2459801261","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Ih859QOfCTvQXsQ0G1XkYg--~B/aD0yMzUxO3c9MzAwMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/zacks.com/babe25e06595923d7ebb8f0e689f76a7"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2459801261","pubTimestamp":1723564860,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":").Instead of keeping excess cash idle in a low-yield bank account, investing in a cash-like ETF can enhance returns while maintaining liquidity.SPDR Bloomberg 1-3 Month T-Bill ETF SPDR Bloomberg 1-3 Month T-Bill ETF seeks to provide exposure to zero-coupon U.S. Treasury securities that have a remaining maturity of 1-3 months. It follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 24 securities in its basket. Average maturity and a","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","SHV":"美国短期国债ETF-iShares","BIL":"债券指数ETF-SPDR Barclays美国1-3月国债","JPM":"摩根大通","JPST":"JPMorgan Ultra-Short Income ETF","BK4550":"红杉资本持仓","BK4588":"碎股","SGOV":"iShares 0-3 Month Treasury Bond ETF","FDN":"First Trust Dow Jones Internet I","PULS":"PGIM Ultra Short Bond ETF"},"translate_title":"是时候投资类现金ETF了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BIL":1,"SHV":1,"SGOV":1,"PULS":1,"JPST":1,"JPM":0.9,"FDN":0.9,"US10Y.BOND":0.9,"US12M.BOND":0.9,"US2Y.BOND":0.9,"US30Y.BOND":0.9,"US3Y.BOND":0.9,"US5Y.BOND":0.9,"US6M.BOND":0.9,"US7Y.BOND":0.9,"US912797GL51.BOND":0.6,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6,"US912797GK78.BOND":0.6},"content_text":"Wall Street has been struggling to find a footing in recent weeks due to overvaluation concerns in the technology sector and economic slowdown worries. Additionally, geopolitical conflict and the looming November elections added to the woes.  In such a scenario, investors want to keep money aside, raising demand for cash-like ETFs. While there are almost two dozen ETFs in this space, investing in the popular ones could be a compelling choice. These are SPDR Bloomberg 1-3 Month T-Bill ETF BIL, JPMorgan Ultra-Short Income ETF JPST, iShares 0-3 Month Treasury Bond ETF SGOV, iShares Short Treasury Bond ETF SHV and PGIM Ultra Short Bond ETF PULS. These funds invest in ultra-short-term bonds and help investors keep aside money for a couple of weeks to a few months with almost no risk. In times of market downturns, these can act as a hedge, protecting the portfolio from significant losses. Unlike equities or longer-duration bonds, the value of cash-like ETFs is less likely to be affected by market turbulence, making them a reliable option during uncertain times (read: Why to Add Safe Haven ETFs to Your Portfolio?).Instead of keeping excess cash idle in a low-yield bank account, investing in a cash-like ETF can enhance returns while maintaining liquidity.\nCurrent Market Trends\nTraders are betting that the U.S. economy has lost steam and is on the verge of sliding toward a recession, given rising unemployment, high interest rates and fading confidence in the tech sector. The big technology companies’ shares, particularly those investing heavily in artificial intelligence (AI), seem overvalued, leading to the recent massive sell-offs. The labor market cooled in July as the economy added 114,000 jobs, 35% fewer than expected. Unemployment rose from 4.1% to 4.3%, the highest since October 2021, and represented the fourth consecutive monthly increase. The data prompted concerns about a recession. Another batch of data from the Institute for Supply Management also indicates slowdown worries. Manufacturing activity fell in July, marking the fourth straight month of contraction (read: 5 Dividend ETFs Crushing the Market).However, the Fed is expected to respond to signs of weakness in the economy with more aggressive interest rate cuts. Per CME Group data, most investors expect larger cuts in the September meeting, with futures implying a 51% probability of a 50 bps cut and 49% odds of a 25 bps reduction. Lower interest rates generally lead to reduced borrowing costs, which help businesses expand their operations more easily, resulting in increased profitability. This, in turn, stimulates economic growth and provides a boost to the stock market.\nETFs in Focus\nSPDR Bloomberg 1-3 Month T-Bill ETF (BIL)SPDR Bloomberg 1-3 Month T-Bill ETF seeks to provide exposure to zero-coupon U.S. Treasury securities that have a remaining maturity of 1-3 months. It follows the Bloomberg 1-3 Month U.S. Treasury Bill Index, holding 24 securities in its basket. Average maturity and adjusted duration are 0.13 and 0.13 years, respectively. SPDR Bloomberg 1-3 Month T-Bill ETF has AUM of $34.4 billion and an average daily volume of 6.6 million shares. It charges 14 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.JPMorgan Ultra-Short Income ETF (JPST)JPMorgan Ultra-Short Income ETF invests mainly in investment-grade, U.S. dollar-denominated fixed, variable and floating-rate debt. It holds 683 bonds in its basket with an average duration of 0.57 years. JPMorgan Ultra-Short Income ETF has AUM of $24.7 billion in its asset base while trading in a good volume of around 4 million shares a day. It charges 18 bps in annual fees (read: Ultra-Short Income ETF Hit a New 52-Week High).iShares 0-3 Month Treasury Bond ETF (SGOV)iShares 0-3 Month Treasury Bond ETF offers exposure to U.S. Treasury bonds with remaining maturities less than or equal to three months. It follows the ICE 0-3 Month US Treasury Securities Index with an average maturity of 0.09 years and an effective duration of 0.08 years. iShares 0-3 Month Treasury Bond ETF has AUM of $24.1 billion and trades in an average daily volume of 4 million shares. SGOV charges 9 bps in annual fees and has a Zacks ETF Rank #3.iShares Short Treasury Bond ETF (SHV)iShares Short Treasury Bond ETF provides exposure to U.S. Treasury bonds that mature in less than a year. It follows the ICE Short US Treasury Securities Index and holds 43 securities in its basket, with an average maturity of 0.26 years and an effective duration of 0.25 years. iShares Short Treasury Bond ETF has amassed $19 billion in its asset base while trading in a solid volume of 2.5 million shares a day. It charges 15 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.PGIM Ultra Short Bond ETF (PULS)PGIM Ultra Short Bond ETF is an actively managed ETF that seeks total return through a combination of current income and capital appreciation, consistent with the preservation of capital. PULS holds 522 bonds in its basket with an average maturity of 1.2 years and an effective duration of 0.2 years. PGIM Ultra Short Bond ETF has AUM of $7.1 billion and charges 15 bps in annual fees. It trades in a volume of 1.5 million shares a day on average.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\niShares Short Treasury Bond ETF (SHV): ETF Research Reports\nSPDR Bloomberg 1-3 Month T-Bill ETF (BIL): ETF Research Reports\nJPMorgan Ultra-Short Income ETF (JPST): ETF Research Reports\nPGIM Ultra Short Bond ETF (PULS): ETF Research Reports\niShares 0-3 Month Treasury Bond ETF (SGOV): ETF Research Reports\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2459801261"}