OBIL ETF

OBIL offers an attractive “cash-like” alternative to traditional hedges, given the current high yield environment and expectations of future Fed rate cuts. The start of the Fed tightening cycle has suppressed volatility and traditional hedging strategies, with traditional hedges (options, inverse funds) performing poorly. The US Treasury 12 Month Bill ETF offers a high duration and a better hedge compared to buying a 1-year T-Bill outright.

The US Treasury 12 Month Bill ETF allows investors to access T-Bills without opening an account with the Treasury. The OBIL ETF provides consistent income with low volatility through its focus on the on-the-run 12-month T-Bill. The fund offers stable returns, high liquidity, and zero credit risk, but is susceptible to interest rate risk and lacks diversification.

Treasury bills are considered a decent cash parking vehicle by investors due to their short term to maturity and backing by the US government. The US Treasury 12 Month Bill ETF aims to track the performance of the ICE BofA US 12-Month Treasury Bill Index. We examine this fund and tell you why we like it.

ETF Edge, September 11, 2023 » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

Recession is almost certainly coming, likely within 1 to 2 months. Stocks are likely to fall 15% to 30%, and possibly as much as 45% if the United States defaults on its debt in 3 to 4 weeks.