By Brian Pacampara, Pacampara, The Motley Fool
Filed under: Investing
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, the iShares Barclays 3-7 Year Treasury Bond ETF has received the dreaded one-star ranking.
With that in mind, let’s take a closer look at IEI, and see what CAPS investors are saying about the ETF right now.
IEI facts
|
Inception |
January 2007 |
|
Total Net Assets |
$2.1 billion |
|
Investment Approach |
Seeks investment results that correspond generally to the price and yield performance of the Barclays U.S. 3-7 Year Treasury Bond Index. The underlying index measures the performance of public obligations of the U.S. Treasury that have a remaining maturity of greater than or equal to three years and less than seven years. |
|
Expense Ratio |
0.15% |
|
1-Year / 3-Year / 5-Year Returns |
2.7% / 4.8% / 4.2% |
|
Dividend Yield |
0.8% |
|
Alternatives |
SPDR Barclays Capital Intermediate Term Treasury PIMCO 3-7 U.S. Treasury Index ETF |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 81% of the 97 members who have rated IEI believe the ETF will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, All-Star TerryHogan, succinctly summed up the IEI bear case for our community:
This thing is yielding 0.8%. And in order to expect capital gains, you need bond yields to go down. While there is still some room to go before we’re negative, there’s not much. I think bonds will underperform from these yield levels. I don’t think interest rates are skyrocketing any time soon, but they really can’t go much lower.
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The article 1-Star ETFs Poised to Plunge: iShares Barclays 3-7 Year Treasury Bond? originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool’s disclosure policy always gets a perfect score.
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