Tag: interest rates rise

What Etf Go Up When Market Goes Down

What Etf Go Up When Market Goes Down When the stock market falls, some people panic and sell their stocks. Others believe that this is a buying opportunity and invest more money in the market. What about people who invest in exchange-traded funds (ETFs)? Do ETFs go up when the market goes down? The answer […]

Why Are Growth Stocks Sensitive To Interest Rates

Growth stocks are companies that are expected to experience higher than average growth in revenues and earnings. They are often characterized by high price-to-earnings (P/E) ratios and are considered to be more risky than value stocks. One reason why growth stocks are sensitive to interest rates is because a higher interest rate environment can make […]

Why Are Bank Stocks Falling

Bank stocks have been falling for the last few weeks, with the S&P Bank Index dropping by more than 5% since the beginning of September. The cause of the decline is not entirely clear, but there are a few possible explanations. The first possibility is that the sell-off is due to concerns about the health […]

Why Do Bond Yields Affect Tech Stocks

There is a strong correlation between bond yields and stock prices, and this is particularly evident in the technology sector. So, why do bond yields affect tech stocks? The most common explanation is that when bond yields go up, it becomes more expensive for companies to borrow money, and this can lead to a slowdown […]

How Tmv Etf Correlates To Rates

How Tmv Etf Correlates To Rates The Vanguard Total Market Index (NYSEARCA:VTI) is a passively managed exchange-traded fund that tracks the performance of the entire U.S. equity market. The fund is designed to provide broad exposure to U.S. stocks and has a market capitalization-weighted allocation. The fund has a 0.07% correlation to the 10-year Treasury […]

Why Do Rising Rates Hurt Tech Stocks

The technology sector has been one of the strongest performing industries in the stock market in recent years. But there are concerns that a rise in interest rates could hurt tech stocks. Rising rates can lead to a stronger dollar, which in turn can make U.S. exports more expensive and hurt corporate earnings. This is […]

Why Are Bank Stocks Down

Bank stocks have been down in recent months, with the S&P Bank Index dropping by about 5% since the beginning of the year. So, what’s behind this sell-off? There are a few factors that may be contributing to the decline in bank stocks. First, interest rates are on the rise, which means that banks’ net […]

How Much Does Turnover Affect Bond Index Etf

The turnover of a bond index ETF can have a significant impact on its performance. The more often the ETFs underlying bonds are traded, the higher the costs of buying and selling those bonds. This can lead to a decrease in the net asset value (NAV) of the ETF and a higher expense ratio. The […]

What Is A Floating Rate Etf

What is a floating rate ETF? A floating rate ETF is an Exchange Traded Fund that invests in debt securities with a variable interest rate. These securities have a coupon rate that resets periodically, typically every three to six months. As a result, the interest rate earned on the ETF’s portfolio will fluctuate over time. […]

How Do Bank Stocks Do When Interest Rates Rise

As the Federal Reserve continues to normalize interest rates, some investors may be wondering how bank stocks will perform.  Bank stocks can be sensitive to movements in interest rates, as higher interest rates can increase the cost of funding for banks.  However, bank stocks can also benefit from rising interest rates, as they can lead […]