SPDR Bloomberg Barclays International Treasury Bond ETF

BWX

Market cap $1.37B

HEI and TDG are BWX Technologies's competitors in the Aerospace & Defense sector that demonstrate:

With talk of rate cuts getting more audible, they almost seem inevitable. Indeed, the CME FedWatch is forecasting an almost 90% chance of cuts.

BWX ETF offers attractive exposure to international government bonds, especially Japan, as global disinflation trends limit further rate hikes outside the US. The ETF's high duration (7.8 years) makes it a higher-sensitivity way to play an ex-US rate cut and incidentally also exposes investors to international FX in a dollar-negative environment. Japan's limited rate hike potential, due to new economic pressure and greater trade competition, supports a positive outlook for BWX's rate-sensitive portfolio.

Global equities ex-US are the leaders, along with a broad measure of commodities, based on a set of ETFs through Friday's close. Vanguard FTSE Developed Markets ETF has rallied 7.2% so far this year.

International sovereign debt offers better opportunities with less risk compared to US Treasuries; consider SPDR® Bloomberg International Treasury Bond ETF for diversification. The BWX ETF invests in high-quality government bonds from investment-grade countries, providing a balanced approach to duration risk and a focus on stability. The fund's allocation includes a mix of developed and emerging markets, with Japan, China, Belgium, Canada, and the UK as top holdings.

As of Oct. 28, 2024, three stocks in the industrials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

Exclude China and broadly defined EM stocks are posting substantially softer results, based on a set of ETFs through Friday's close. US shares are effectively neck and next with EM so far in 2024.

A reader asked for my thoughts on BWX. BWX offers diversified exposure to international government bonds, but with higher risk and lower returns compared to US treasuries. It has few important benefits. An overview of the fund follows.