How to play the treasury rally using ETFs.

The video discusses the PIMCO 25+ Year 0 Coupon U.S. Treasury ETF, highlighting its unique characteristics and how it benefits from falling interest rates due to its long duration. It also covers the impact of interest rates on ETFs, particularly bond and dividend ETFs, and the importance of understanding their underlying holdings. The discussion extends to international exposure in U.S. ETFs and the role of major companies like Presidian and Goldman Sachs in the ETF market.

What is a key characteristic of the PIMCO 25+ Year Zero Coupon U.S. Treasury ETF?

• It has a short duration of 5 years.

• It has a high duration of about 27 years.

• It benefits from rising interest rates.

• It is a high-yield corporate bond ETF.

How does a 1% drop in interest rates affect the PIMCO 25+ Year Zero Coupon U.S. Treasury ETF?

• It increases by 27%.

• It decreases by 27%.

• It decreases by 1%.

• It remains unchanged.

What should investors consider beyond fees when evaluating dividend ETFs?

• The color of the ETF logo.

• The number of stocks in the ETF.

• The duration and credit quality.

• Only the brand name of the ETF.

Which sector is notably included in the SPYD ETF but not in others like VYM and HDV?

• Consumer Discretionary

• Real Estate

• Healthcare

• Technology

Why are some mutual fund shareholders transitioning to ETFs?

• For higher fees and less transparency.

• To avoid any exposure to international markets.

• For better tax efficiency and lower costs.

• To increase the complexity of their investments.