USFR - USFR: The Safety Side Of The Barbell
2024-05-30 03:49:51 ET
Summary
- USFR: The Treasury FRNs (floating rate notes) ETF that yields dividend monthly at the rates in line with the target rates (5.25%-5.50%).
- USFR with stable income at above 5% therefore could nicely be the safety side of the barbell in the portfolio, especially when the cut cycle is prolonged to start later.
- If we are thinking about a place to park cash, USFR also looks very promising among others with the same nature of ultra-short securities such as CDs.
- One important point to consider could be the floating treasury as the building blocks of the fund are adjusting rates on a weekly basis, and that could reflect coupon rates to adjust downward when interest rates fall.
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USFR: The Safety Side Of The Barbell