PIMCO 25+ Year Zero Coupon US Treasury Index ETF

ZROZ tracks a market-weighted index comprising separate trading of registered interest and principal of Securities (STRIPs), with a remaining maturity of 25 years+.

Despite recent volatility, I maintain a "Buy" rating on the ZROZ ETF as a recession hedge, given the uncertain economic outlook. Higher implied premiums may lead to worse performance of long-term US treasuries in a soft landing scenario. Potential downward revisions in non-farm payrolls data suggest long-term US Treasuries may see a sharp rally in early 2025.

ZROZ: Don't Be Confused By Macro Data

The PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF tracks long-dated US government STRIPS, giving it increased interest rate sensitivity. The current 4.5% yield on long-dated US treasuries is well above the Fed's neutral rate and should deliver higher returns relative to the short end of the curve. A 4.5% nominal annual return for 25-30 years will likely lag behind riskier alternatives such as equities or real estate.

ZROZ: Recession Protection On Sale

JPMorgan BetaBuilders Europe ETF

SPDR Bloomberg 1-3 Month T-Bill ETF

Xtrackers MSCI Europe Hedged Equity ETF

Xtrackers MSCI Eurozone Hedged Equity ETF

WisdomTree Europe SmallCap Dividend Fund

Vanguard Extended Duration Treasury ETF

BlackRock Enhanced Government Fund

WisdomTree Europe Quality Dividend Growth Fund

ProShares MSCI Europe Dividend Growers ETF

Direxion Daily FTSE Europe Bull 3X Shares

WisdomTree Europe Hedged SmallCap Equity Fund

iShares MSCI Eurozone ETF

First Trust STOXX European Select Dividend Index Fund

First Trust Europe AlphaDEX Fund

First Trust Eurozone AlphaDEX ETF

SPDR EURO STOXX 50 ETF

iShares U.S. Fixed Income Balanced Risk Factor ETF

Franklin FTSE Europe ETF

Franklin FTSE Eurozone ETF

First Trust IPOX Europe Equity Opportunities ETF

Goldman Sachs TreasuryAccess 0-1 Year ETF

iShares U.S. Treasury Bond ETF

iShares 25+ Year Treasury STRIPS Bond ETF

Goldman Sachs ActiveBeta Europe Equity ETF

Invesco Ultra Short Duration ETF

WisdomTree Europe Hedged Equity Fund

iShares Currency Hedged MSCI Eurozone ETF

iShares 7-10 Year Treasury Bond ETF

iShares 3-7 Year Treasury Bond ETF

iShares Core MSCI Europe ETF

iShares MSCI Europe Small-Cap ETF

iShares Europe ETF

First Trust Long Duration Opportunities ETF

ALPS O'Shares Europe Quality Dividend ETF Shares

ProShares UltraShort 7-10 Year Treasury

Pacer Trendpilot European Index ETF

First Trust RiverFront Dynamic Europe ETF

Schwab Short-Term US Treasury ETF

Schwab Long-Term US Treasury ETF

Schwab Intermediate-Term US Treasury ETF

iShares 0-3 Month Treasury Bond ETF

iShares Short Treasury Bond ETF

iShares 1-3 Year Treasury Bond ETF

SPDR Portfolio Europe ETF

SPDR Portfolio Long Term Treasury ETF

SPDR Portfolio Short Term Treasury ETF

Proshares Short 20+ Year Treasury

ProShares UltraShort 20+ Year Treasury

ProShares Short 7-10 Year Treasury

iShares 10-20 Year Treasury Bond ETF

iShares 20+ Year Treasury Bond ETF

Direxion Daily 20+ Year Treasury Bull 3X Shares

Direxion Daily 20+ Year Treasury Bear 3X Shares

ProShares UltraPro Short 20+ Year Treasury

Direxion Daily 7-10 Year Treasury Bull 3x Shares

Direxion Daily 7-10 Year Treasury Bear 3x Shares

ProShares Ultra 20+ Year Treasury

ProShares Ultra 7-10 Year Treasury

US Treasury 2 Year Note ETF

Vanguard Intermediate-Term Treasury ETF

Vanguard FTSE Europe ETF

Vanguard Long-Term Treasury ETF

Vanguard Short-Term Treasury ETF

The ECB cut rates by 25bp as widely anticipated, but a slightly hawkish tilt bear flattened the EUR curve, which in our view remains priced aggressively. In the US, as the markets head towards the Fed's first rate cut, the probability of a larger cut rose slightly on Thursday.

Rates Spark: ECB Presser Bear-Flattened The Curve

BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF

Treasuries are poised for their longest monthly winning streak in three years on September rate cut bets.

ETFs Soaring on Treasuries' Longest Winning Streak in 3 Years

iShares Core U.S. Aggregate Bond ETF

Doubleline Opportunistic Bond ETF

iShares iBoxx $ Investment Grade Corporate Bond ETF

Are we going to have a recession? Are we already in a recession?

DoubleLine on Recession, Current Positioning, and U.S. Debt

The recent equity rout has led investors to seek refuge in Treasury securities, perceived as safe-haven assets.

Treasury ETFs Gaining on Slowdown Concerns, Rate Cut Bets

ZROZ ETF is a long-term zero-coupon bond vehicle managed by PIMCO, which has shed nearly 15% of its value in the past year. We believe the volatile interest rate environment makes this long-duration bond vehicle unattractive. A rising term premium and liquidity worries might dampen ZROZ's pricing and dividend-based prospects.

ZROZ ETF: Better Staying On The Sidelines For Now

Zero coupon treasury bonds are considered to be a better way to benefit from rate cuts in the US compared to ordinary treasury bonds. While the bond market is getting repriced for a "higher for longer" scenario, I expect interest rate cuts sooner rather than later. Both ZROZ and EDV are fine if you expect interest rate cuts in the foreseeable future, though one of these two ETFs is slightly better.

ZROZ Vs. EDV: Which Zero Coupon Treasury ETF Is Better?

Amazon

British American Tobacco

Pacer US Cash Cows 100 ETF

Enbridge

Enterprise Products Partners

iShares Russell Top 200 Growth ETF

KFA Mount Lucas Index Strategy ETF

Lear

Altria

MPLX

Netflix

ServiceNow

NVIDIA

Schwab US Dividend Equity ETF

Invesco S&P 500 GARP ETF

Building the right portfolio for your needs is essential to achieving your goals. With a great portfolio strategy, you can become confident in achieving your dreams. This article highlights the ZEUS portfolio strategy, which focuses on a time-tested, recession-optimized asset allocation that delivers the best total returns per unit of negative volatility. 33% ETFs, 33% hedges, and 33% individual stocks enhance a diversified and balanced mix of growth, yield, and value and are wrapped within the highest quality company wrappers.

Building A 4% Yielding Sleep Well At Night Retirement Portfolio With 16 Blue-Chip Stocks And ETFs

VanEck Vectors Gold Miners ETF

VanEck Junior Gold Miners ETF

iShares North American Tech ETF

American Beacon GLG Natural Resources ETF

iShares MSCI USA Momentum Factor ETF

Nuveen Growth Opportunities ETF

iShares Mortgage Real Estate ETF

Amplify Junior Silver Miners ETF

VanEck Vectors Semiconductor ETF

T Rowe Price Blue Chip Growth ETF

Direxion Daily MSCI Emerging Markets ex China Bull 2X Shares

Hello! This is MarketWatch reporter Isabel Wang bringing you this week's ETF Wrap. After a decade of seemingly never-ending fee-cutting wars, ETF issuers raised their fees in 2023 as the landscape evolved beyond cheap index-tracking funds.

ETF issuers defied investor expectations by raising fees in 2023. They may have to keep doing it.

Long-term Treasury ETFs like ZROZ have the potential to outperform equities and commodities due to a disinflationary downcycle and a significant decline in yields. The behavior of the yield curve suggests that long-term yields will fall over the course of the next two years, benefiting long-duration Treasuries. Relative performance metrics currently show underperformance of ZROZ, but it will likely beat the S&P 500 and commodity ETFs as yields fall.

ZROZ: Likely To Rise Significantly Through 2025

The Federal Reserve will likely cut rates this year. Significant rate cuts would almost certainly lead to higher bond prices. Most bond funds would benefit, some more than others. ZROZ would be one of the biggest beneficiaries.

ZROZ: Long-Term Treasury STRIPs ETF, For Dovish Traders

Affirm

ProShares Bitcoin Strategy ETF

Amplify Transformational Data Sharing ETF

Amplify Online Retail ETF

Harbor Long-Short Equity ETF

AdvisorShares Pure US Cannabis ETF

VanEck Vectors Oil Services ETF

SPDR MSCI USA StrategicFactors ETF

Aberdeen Standard Physical Silver Shares ETF

SPDR DoubleLine Short Duration Total Return Tactical ETF

SPDR DoubleLine Total Return Tactical ETF

United States Natural Gas Fund LP

United States Oil Fund LP

SPDR S&P Oil & Gas Exploration & Production ETF

Hello! In this week's ETF Wrap, you'll get a look at flow data showing recent “bullish buying behavior” from investors, as well as funds to consider before 2024 hits.

ETF investors flee cash-like government bond funds, favor riskier assets in ‘bullish buying'

The world's largest bond market made a remarkable recovery in November after experiencing difficulties earlier in 2023. It is now on track for its best month since March.

Treasury ETFs on Track for Best Month Since March

The bear market in bonds has ended and long-duration assets are rallying, presenting an opportunity for capital gains. The Federal Reserve's interest rate hikes have negatively impacted the bond market, leading to losses in fixed income assets. I predict that inflation will normalize and the Fed will eventually cut rates, leading to potential gains in the ZROZ bond fund.

ZROZ: Adding Duration Risk With The PIMCO 25+ Zero Coupon Bond Fund

The latest Middle East conflict between Israel and Palestine boosted the safe-haven demand and dragged down U.S. treasury bond yields.

Time to Buy Leveraged Treasury Bond ETFs?

ASML Hld

VanEck Morningstar Wide Moat ETF

Invesco Russell 1000 Dynamic Multifactor ETF

Cambria Shareholder Yield ETF

TC Energy

VictoryShares Free Cash Flow ETF

My family has been rocked by an unrelenting string of medical and life crises. Fortunately, my family's charity hedge fund is saving us from bankruptcy and despair. I've updated my family's ZEUS Income Growth fund plan to include my best ideas right now. In other words, if I had $2.5 million in cash, this is what I'd buy. This portfolio yields 4.2%, has 13.7% long-term return potential, better than the Nasdaq, and analysts expect it to potentially quadruple over the next decade.

How I'd Invest $2.5 Million Right Now

United States Brent Oil Fund LP

Invesco DB Oil Fund

Simplify Interest Rate Hedge ETF

United States 12 Month Oil Fund LP

Invesco DB US Dollar Index Bullish Fund

Valkyrie Bitcoin Miners ETF

We discuss some of the hot events of the first nine months of this year that influenced the market in a big way.

Who Said Bonds Were Boring?

The fastest interest rate hiking cycle in 42 years crushed bonds, some as much as 50%. The equity risk premium has fallen to 22-year lows. Compared to stocks it's the best time in 22 years to buy high-yield US Treasury bond ETFs. There is a 66% chance the Fed is done hiking and historically long bonds soar about 60% within two years of the Fed ending its rate hike cycle.

It's The Best Time In 22 Years To Buy These High-Yield ETFs

We challenge the view that interest rate normalization accompanied by a Fed pivot will drive down ultra-long-term yields. Low long-term yields are an illusion created by the effects of quantitative easing, and they are unlikely to repeat. We think there is room for long-term yields to rise. We see the scenario for a gradual normalization of monetary policy and the unwinding of the Fed's quantitative easing program to drive long-term yields closer to 5.5% over time.

ZROZ: Adding Duration May Not Be Worth The Risk

ZROZ from PIMCO is an ultra-long duration bond ETF. The fund has been battered with the rising interest rates. We look at whether this would be a good play today with interest rates far higher than they were 2 years back.

ZROZ: PIMCO Fund Is A Big Bet On A Deflationary Bust

Invesco KBW Regional Banking ETF

Rating agency Fitch downgraded the United States to AA+ from AAA on Aug 1.

ETF Areas in Focus on Fitch Downgrade of Credit Rating

Global X Artificial Intelligence & Technology ETF

IMGP Berkshire Dividend Growth ETF

Global X Robotics & Artificial Intelligence ETF

iShares MSCI Emerging Markets ex China ETF

Pacer Benchmark Industrial Real Estate SCTR ETF

Global X Lithium & Battery Tech ETF

Invesco WilderHill Clean Energy ETF

First Trust NASDAQ Clean Edge Green Energy Index Fund

VanEck Rare Earth/Strategic Metals ETF

Simplify Short Term Treasury Futures Strategy ETF

Hello! This is markets reporter Isabel Wang bringing you this week's ETF Wrap. In this week's edition, I spoke with CFRA's Aniket Ullal, head of ETF data and analytics, about thematic ETF ideas and investment categories for the second half of 2023.

Here are ETF themes and categories investors may want to consider in the second half of 2023

Avantis U.S. Small Cap Value ETF

Ea Bridgeway Omni Small Cap Value ETF

iShares MSCI Germany ETF

Franklin Income Focus ETF

Quadratic Interest Rate Volatility and Inflation ETF

iShares Russell 2000 ETF

SPDR S&P Bank ETF

SPDR S&P Regional Banking ETF

O'Shares US Small-Cap Quality Dividend ETF

Invesco S&P SmallCap Value with Momentum ETF

Hello! This is markets reporter Isabel Wang bringing you this week's ETF Wrap. In this week's edition, we take a look at small-cap ETFs, which attracted significant inflows in the past week as small-cap stocks have rebounded after being left behind by the megacap technology shares which soared in 2023.

Why it is risky for ETF investors to blindly chase the small-cap rally

News for PIMCO 25+ Year Zero Coupon US Treasury Index ETF ETF (ZROZ)