US Treasury 2 Year Note ETF

UTWO

Capitalización de mercado USD 509 M

On CNBC's “Halftime Report Final Trades,” Joshua Brown, co-founder and CEO of Ritholtz Wealth Management, picked F/M US Treasury 2 Year Note ETF (NASDAQ:UTWO).

Treasury Secretary Bessent insists on challenging the bond vigilantes, and neither side is backing down. The underlying trends are pointing toward volatility ahead and potentially much more.

On Wednesday, July 29, the FOMC rate decision will be followed by Microsoft and Meta earnings after the close. Thursday begins with the advance estimate of Q2 GDP and the June PCE inflation report before Apple and Amazon report after the bell. CME FedWatch currently implies a 62–65% probability that the Fed holds rates in July, with the remaining probability assigned to a hike.

Investors who pay close attention to the bond market generally monitor two interest rate benchmarks above all else.

Toronto, Ontario--(Newsfile Corp. - June 19, 2026) - U92 Energy Corp. (TSXV: UTWO) (the "Company" or "U92") is pleased to announce that, further to its news release dated June 1, 2026, it has received TSX Venture Exchange approval and closed a binding Asset Purchase Agreement to acquire the complete historical technical and exploration dataset relating to the Kurupung Uranium Project in Guyana (the "Transaction"). Pursuant to the Transaction, U92 has issued 1,030,927 common shares of the Company (the "Shares") at a deemed price of $0.485 per Share to the arm's-length vendor.

The US Treasury 2 Year Note ETF offers easy access to 2-year government bonds, yielding 4.2% with monthly payouts. UTWO's single-bond focus minimizes credit risk and ensures pure exposure to the 2-year US Treasury yield curve. The fund's 0.15% expense ratio is competitive, but concentration risk and potential impact on returns during low-yield periods are considerations.

UTWO offers exposure to 2-year Treasuries with a 1.9-year duration, rolling monthly, and is highly correlated with Fed Funds, reflecting monetary policy changes. The ETF is expected to yield a 6% total return by end-2025, assuming a soft landing and a 3% long-term neutral rate. UTWO's structure focuses on capital gains and serves as an alternative to SHY, useful for arbitrage trades in the yield curve.

The ECB cut rates by 25bp as widely anticipated, but a slightly hawkish tilt bear flattened the EUR curve, which in our view remains priced aggressively. In the US, as the markets head towards the Fed's first rate cut, the probability of a larger cut rose slightly on Thursday.

The US Treasury 2 Year Note ETF gives investors exposure to 2-year treasury notes. While both UTWO and TUA should benefit in an adverse economic scenario requiring the Fed to cut interest rates, UTWO's low duration may not be an effective hedge. Instead, I believe the UTWO ETF is best suited for conservative investors who are willing to take on modest duration risk for a potentially higher return compared to treasury bills.

After raising it to the level of 5.50%, the Federal Reserve is expected to slash interest rates at some points this year.