Buy SGOV if You Think the Federal Reserve Is Set to Hike Rates

Impact · against what's priced in

The current environment of rising oil prices and geopolitical conflict has shifted the Fed's trajectory toward rate hikes, benefiting short-duration instruments like SGOV and MINT while pressuring long-duration bonds like TLT. The shift is material as it reverses previous market consensus for rate cuts.

SGOV+0.80

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In context

SGOV's short-term Treasury holdings allow it to capture rising yields almost immediately as the Fed responds to inflation pushed by oil crossing $100 a barrel.

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• geopolitics▲8%
• oil
• inflation
• rates
• fed
• MINT
• SGOV
• TLT
• VCLT
• cash management