US Treasury 10 Year Note ETF

UTEN

Market cap $230M

UTEN offers reasonable expense ratios compared to similar-duration Treasury ETFs. There are several countervailing factors in the debate around duration. We think the clincher is whether the consumer will absorb outstanding tariff-driven price increases in final goods. Stable employment figures signal that they might, though concerns around flows out of the labour pool due to discouragement suggest the opposite.

President Trump's calls for rate cuts and focus on the 10-year Treasury rate could influence market expectations and lower yields. The administration may lower yields by prioritizing T-Bills issuance and reducing energy prices, though challenges with OPEC and Saudi Arabia persist.

UTEN offers hands-off exposure to 10-year Treasury Notes with a 0.15% expense ratio and a 4.52% 30-day SEC yield. Investors should monitor monetary policy, inflation data, economic growth, and geopolitical tensions due to UTEN's 7.91-year effective duration. Because of the current inflation progress and the outlook for yields, long-term Treasury exposure is not warranted.

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