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This week’s new 52-week highs and lows … (Jan 30-Feb 5)This week’s new 52-week highs and lows… (Jan 9-15)23 Stock Top Picks and 7 ETF (Nov 30 Dec 6)This summary was created by AI, based on 3 opinions in the last 12 months.
The experts agree that iShares DEX Floating Rate ETF is a good investment when interest rates are rising and yields are going up. However, in the current environment of falling rates, they advise against investing in it. They warn against assuming past yields will continue and highlight the risk of lower coupons in the future. It's suggested to term out debt and extend duration to capture yield for a longer term instead of investing in this ETF.
Good if interest rates rise. Not when rates are falling. Would not invest lately (Fed likely to cut rates).
Not good long term when interest rates will decline. Better to extend duration to capture the yield for a longer term. The reinvest risk is real and not an in-perpetuity investment.
He’s using instead of cash. Floating rate, doesn’t move around much. If interest rates in Canada rise, this will track up with them. Another defensive play.
Floating rate notes. Feels that floating rate securities have a role to play in a portfolio but doesn’t think they should be the entire fund. They are pretty much a guaranteed “round trip”. Over time, banks tend to raise rates then they stop raising rates and then they start to ease rates. This is the time you want to own floating rate products because the floating part of your cash flow is going up. Then they stabilize and the most likely scenario at that time is for REITs to be lowered, which is when you want to get out, but everyone wants to get out. Really tricky.
Basically a lower yield ETF because dividends that are paid on the preferred shares inside this ETF are lower than what you would get on a standard preferred in the market. But this dividend will rise and fall based on the rate of interest. If you think interest rates are likely to be higher a year or 2 from now, you should have a portion of your portfolio into a product that will give you a great deal of stability and the rate of return you get in terms of the yield will float pretty tightly based on the current rate of interest rates.
iShares DEX Floating Rate ETF is a Canadian stock, trading under the symbol XFR-T on the Toronto Stock Exchange (XFR-CT). It is usually referred to as TSX:XFR or XFR-T
In the last year, 3 stock analysts published opinions about XFR-T. 0 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for iShares DEX Floating Rate ETF.
iShares DEX Floating Rate ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for iShares DEX Floating Rate ETF.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered iShares DEX Floating Rate ETF In the last year. It is a trending stock that is worth watching.
On 2024-12-06, iShares DEX Floating Rate ETF (XFR-T) stock closed at a price of $20.06.
You want floating rates in your portfolio when yields are going up, as it mitigates the negative impact of prices changing. The floating nature means the coupons can set a lot more frequently than would a 10-year bond.
If you think about a series of 3-month bonds or other short-term securities, always giving you the current coupon when they roll over, as yields go up you're getting higher yields. But if you owned a 10-year bond over that window as yields were going up, the price of that 10-year would go down to adjust.
Right now, we're in an environment of cutting rates. So you would want to term out some of your debt. We missed a lot of that rally already. So right now, he wouldn't advocate having this in your portfolio. Make sure you don't look at the past yield and assume you're getting that going forward, because that's not the case. With yields going down, the coupons will reset lower to lower yields going forward.