Rising ETF Yields: Impact of Yen Strength and U.S. Long-term Bond Rate Decline
Recently, ETFs investing in U.S. long-term bonds with the Japanese yen have gained attention, driven by the potential for interest rate hikes by the Bank of Japan and uncertainties in the U.S. economy. Notably, the ACE ETF by Korea Investment Trust Management and the RISE ETF by KB Asset Management have recorded impressive yields of 9.47% and 9.12%, respectively, drawing investor interest. These ETFs benefit from the combination of yen strength and declining U.S. bond yields.
With the yen showing strength, these ETFs stand to gain significantly during periods of rising yen-won exchange rates. Experts foresee a continued strong yen outlook but anticipate low further declines in U.S. long-term bond rates. Therefore, the investment landscape for ETFs is expected to be heavily reliant on the economic situations in Japan and the U.S. markets.
Related ETF
Related News
Yen-Exposed US Treasury Bond ETF SoaredYen-Exposed US Treasury Bond ETF Soared, RISE by 8% in One Month for 30-Year US Treasury Yen Exposure… Domestic Bond #1 as Yen Strengthens and US Recession Concerns Mount
Related ETF
US Long-term Bonds and Yen ETF Near 10% Monthly Return... Potential for Further Increase - Yonhap InfomaxThe Exchange-Traded Fund (ETF) investing simultaneously in US long-term bonds and the yen has risen somewhat steeply over the past month. Concerns have grown about the continuation of American exceptionalism, as US Treasury yields show a downward trend, particularly in longer-term bonds, and the Bank of Japan (BOJ) has officially entered a rate hike cycle, leading to a sharp rise in yen value. According to Korea Investment Management on the 6th, the 'ACE US 30-Year Treasury Yen Exposure Active (H)' ETF showed a one-month return of 9.47% as of the previous day. It recorded a 3-month return of 2.62% and a 6-month return of -2.00%.