Market News AIOpen the app

The Fed is raising interest rates again: Here are 4 ETFs that might gain from this and ongoing inflation.

MarketRead the original at benzinga.com
Good for SGOV

SGOV holds ultra-short Treasuries and reports a 3.63% 30-day SEC yield; its holdings reset as bills mature, so higher short-term rates raise its income.

SGOV · iShares 0-3 Month Treasury Bond ETF

AI read · Good for SGOV

The AI's read

SGOV holds ultra-short Treasury bills whose yields reset as they mature. With the Fed raising rates, those bill yields can rise quickly and lift SGOV's 30-day SEC yield above cash alternatives.

USFR · WisdomTree Floating Rate Treasury Fund

AI read · Good for USFR

The connection

USFR holds floating-rate Treasury notes whose coupons reset with short-term rates, so another Fed hike should raise its coupon income quickly.

TIP · iShares TIPS Bond ETF

AI read · Good for TIP

The connection

TIP holds inflation-protected Treasuries that adjust principal with inflation; rising inflation from energy shocks supports TIP as an inflation hedge.

VTV · Vanguard Value ETF

AI read · Good for VTV

The connection

VTV is weighted to established, profitable companies and could offer relative protection if higher rates hurt richly valued growth stocks.

Get alerts for SGOV

Follow iShares 0-3 Month Treasury Bond ETF (SGOV) free. When we publish a story about it, you get the plain-English explanation as an alert.

Get alerts for SGOV
Free on the App Store and Google Play, or on the web.