iShares Core Total USD Bond Market ETF (IUSB)

The IUSB ETF is highly sensitive to rate changes due to its higher duration. Rising inflation expectations complicate the Fed's policy decisions, making sustained rate less likely than markets think, despite the emerging recessionary pressure consensus in bond markets. Falling oil prices may support a rate cut narrative, but we're cautious, favoring selective equities over duration in the current environment.

Advisors and investors have long turned to active management for fixed income exposure. They are increasingly favoring ETFs to access the markets.

The U.S. ETF industry is about to hit a tremendous milestone. Year to date through November 11, $897 billion has flowed into exchange traded funds, according to FactSet data.

ETFs across various categories pulled in $7.1 billion in capital last week, with U.S. fixed-income ETFs leading the way.

Fixed income ETFs continue to gain traction globally. As of August 2024, the asset category managed $2.5 trillion in assets, with iShares managing $1 trillion alone.

The iShares Core Total USD Bond Market ETF could be a viable countercyclical investment as the equity-bond market correlation may be breaking. IUSB has low expense ratios and high credit quality, but its significant duration makes it sensitive to medium to long-term rate changes. If inflation concerns subside, the Fed may lower rates to support growth, benefiting fixed income, though the economic decline is likely needed first, which is the basis of breaking correlation.

There are many reasons to celebrate the BlackRock Flexible Income ETF (BINC). The actively managed multisector ETF launched less than 15 months ago.

Barron's Mid-Year 2024 Pro Picks revealed by panelists for potential investment opportunities. Barron's interviews of eleven financial industry Roundtable-pros tapped 48 predictions. Twelve non-ADR foreign stocks and six funds were dropped by YCharts screens, and six selections paid no dividends, leaving 24 in the final pool. The Barron's list tracked by YCharts as of 7/17/24 projected ten top analyst-estimated net gains from WST, ASML, PBR, RUSHA & topped by SLB ranging 19.46%-35.09%.

IUSB tracks the Bloomberg U.S. Universal Index (LC07TRUU) which includes investment-grade and high-yield U.S. dollar-denominated bonds. The fund is overweight Treasuries and Agency MBS bonds (57% of holdings) and has a duration of 5.8 years, making it sensitive to interest rates. The ETF has a low expense ratio (0.06%) and low volatility (annualized volatility of 6.4%).

U.S. Weekly FundFlows Insight Report: Equity ETFs Attract Largest Weekly Net Inflows Since Dec. 20, 2023 For Fund Flows Week

Barron's First New-Year Roundtable, published 1/11/24, listed 8 stocks of note for 2024. The follow-up article published 1/22/24 mentioned 27 more and included a buy-recommendation from Andrew Bary for BP.

Barron's First New-Year Roundtable, published 1/11/24, listed 8 stocks of note for 2024. The follow-up article published 1/22/24 mentioned 27 more and included a buy-recommendation from Andrew Bary for BP. Barron's interviews of eleven financial-industry Roundtable-pros over those two-weeks tapped 35 predictions along-with the BP-feature. Four funds were missed by YCharts screen of active-stocks. Seven-selections paid no-dividends, leaving 23 in-the-pool. The combined Barron's two-part list tracked-by YCharts as of 2/8/24 projected ten-top analyst-estimated net-gains from ORCL, INTC RTX, GPN, DE, OSK, WTFC, FANG, BP & topped-by EG ranging 6.0%-27.58%.

At the close of LSEG Lipper's fund-flows week, U.S. broad-based equity indices reported mixed to negative returns.

iShares Core Total USD Bond Market ETF offers exposure to the entire bond market, including junk bonds. IUSB has a similar performance to the largest "total" bond market ETF, BND, with a slight outperformance over the past 5 years. IUSB is a suitable choice for passive investors who prefer to buy and hold a broad market bond index.

iShares Core Total USD Bond Market ETF is worth considering as stocks become more volatile and bonds are catching a bid. The IUSB ETF provides broad access to the total U.S. Dollar-denominated bond market with a low expense ratio and a 5.22% yield. The fund's diversified holdings and focus on AAA-rated securities make it an enticing option for investors seeking income potential and risk management.

Bond ETFs represent approximately 20% of the industry assets. Yet they have gathered more than 40% share of the net inflows in the first nine months of 2023.