iShares Core Universal USD Bond ETF (IUSB)
Ameriprise Financial Inc. Acquires 131,323 Shares of iShares Core Total USD Bond Market ETF $IUSB
Ameriprise Financial Inc. increased its stake in shares of iShares Core Total USD Bond Market ETF (NASDAQ: IUSB) by 1.2% during the third quarter, according to its most recent filing with the SEC. The institutional investor owned 11,066,646 shares of the company's stock after purchasing an additional 131,323 shares during the period. Ameriprise
IUSB: A Rate Cut Is Up In The Air
The IUSB ETF is highly sensitive to rate changes due to its higher duration. Rising inflation expectations complicate the Fed's policy decisions, making sustained rate less likely than markets think, despite the emerging recessionary pressure consensus in bond markets. Falling oil prices may support a rate cut narrative, but we're cautious, favoring selective equities over duration in the current environment.
IUSB: Correlation May Be Breaking
The iShares Core Total USD Bond Market ETF could be a viable countercyclical investment as the equity-bond market correlation may be breaking. IUSB has low expense ratios and high credit quality, but its significant duration makes it sensitive to medium to long-term rate changes. If inflation concerns subside, the Fed may lower rates to support growth, benefiting fixed income, though the economic decline is likely needed first, which is the basis of breaking correlation.
