August 18, 2019

Hello Everyone,

Over the last month the S&P 500 has fallen 4.1%, and 2.2% from my VERY CAUTIOUS SIGNAL of the 2954 break. Even though the markets are down for the month, they are still up nicely for the year. Bonds have rallied as well as commodities such as gold and silver.

Last month I stated that there was a Bearish pattern emerging called a Rising Wedge and I talked about the negative break of the pattern and once it closed below that pattern I went negative. You can clearly see the pattern on the chart below. Now that it has broken to the downside what happens
now?

We are not fortune tellers on what Trump will say or tweet, we don’t know what the Chinese will say or how they will react, but the technicals are not that bad and are starting to get a little more positive. My computer models are currently at a short term BUY signal, but things change daily like the tweets.

You have heard that because of the inverted yield curve, where typical money market is yielding 2% and the 10 year bond is yielding 1.6%. You can see that it is inverted. The 10 year bond should be yielding above the daily money market, not below it. Because of this and the inversion of most of the bonds, there might be a recession in about 1 to 1.5 years. I have been saying that over my last many Bartometers that I see a recession in about a year and a half, but not yet. What may be causing the inversion, may be foreign countries that have a negative yield actually buying our 2 to 30 year bonds and pushing the price up and the driving the yields down.

My fundamental economist Dr. Robert Genetski, from classicalPrinciples.com believes that while most observers believe that trade barriers are the main headwind facing stocks, like the Chinese tariffs, he is more concerned over a restrictive monetary policy. Signs of monetary restraint from interest rates and liquidity suggest that the odds of a recession have increased.

The S&P 500 is now 10% below his estimate of its value. As such, a positive announcement on trade or money can quickly send stocks soaring. For the moment the Fed will resist easing policy.

However, if stocks and interest rates continue to decline, constant pressure from the President to ease policy will lead to an abrupt, positive change. Such a change would quickly allow a resumption of the bull market in stocks.

On the Technical Side

My computer models went on a very short BUY signal last week, but there are three resistance and 2 support levels you may want to remember, 2944 is the first level where the S&P may stall and 2954.71 is the next major level that if broken and it I closes above that level many traders may come in and start buying possibly pushing the markets up and testing the old highs of 3025.

On the other hand, on the downside 2823 has buying support and 2799 is the 200 day moving average. That may hold too. It is now trading in a channel, 2944 on the top and 2823 on the bottom. A close of either one of those areas could mean the next major up or down trend direction.

Interest Outlook

I see the Federal Reserve reducing interest rates ¼% in December.

Index Averages

Some of the INDEXES of the markets both equities and interest rates are below. The source is Morningstar.com up until August 16th, 2019. These are passive indexes.

*Explanation of each on the last page

The S&P 500

Rising Wedge

Support

The S&P 500 is above. Last month I stated that there was a Rising Wedge Pattern that was technically bearish and that a break below the bottom of the pattern would make me Very Cautious. Now that it has broken below that pattern it is trading between 2823 and 2944. If the S&P closes above 2944 it could push it to 2954 where it could find heavier resistance. If it stays above 2954 for 2 to 3 days with heavy volume the market may have turned to a Bullish stance, but Volatility will remain. Even though we went to a SHORT TERM BUY signal, I am still a little Cautious.

The 2nd and third chart show the SK-SD Stochastics. At 32-40 where the arrow is pointing shows that the market is getting oversold and getting cheap and ready for a bounce. The third graph shows that the market momentum is still negative as the pink line is below the green line. A Short term Buy signal would be generated when the pink line crosses over the green line showing that momentum is again on the bullish side. As of right now the market technicals are getting better and a close above 2954.71 could change the trend to the positive side. Support levels on the S&P where
there may be buying support is 2823, 2727 the 200 moving average, and 2730 the test and the low of the June low. I like the USA markets more than the International markets.

Source: AIQ Systems on graphs

The rising wedge pattern is characterized by a chart pattern which forms when the market makes higher highs and higher lows with a contracting range. When this pattern is found in an uptrend, it is considered a reversal pattern, as the contraction of the range indicates that the uptrend is losing strength. When this pattern is found in a downtrend, it is considered a bearish pattern, as the market range becomes narrower into the correction, indicating that the correction is losing strength, and that the resumption of the downtrend is in the making.

In a rising wedge, both boundary lines slant up from left to right. Although both lines point in the same direction, the lower line rises at a steeper angle than the upper one. Prices usually decline after breaking through the lower boundary line. As far as volumes are concerned, they keep on declining with each new price advance or wave up, indicating that the demand is weakening at the higher price level. A rising wedge is more reliable when found in a bearish market. In a bullish trend what seems to be a Rising Wedge may actually be a Flag or a Pennant (stepbrother of a wedge) requiring about 4 weeks to complete

Rising Wedges are not guaranteed so the 3019-3022 level and staying there for a couple of days could void this negative pattern. A break decisively on a close below 2979 could satisfy the Rising Wedge.

Source: Investopedia

*A Support or support level is the level at which buyers tend to purchase or into a stock or index. It refers to the stock share price that a company or index should hold and start to rise. When a price of the stock falls towards its support level, the support level holds and is confirmed, or the stock continues to decline, and the support level must change.

▪ Support levels on the S&P 500 area are 2844, 2803, and 2730. These might be BUY areas.

▪ Support levels on the NASDAQ are 7862, 7657, 7416, and 7291.

▪ On the Dow Jones support is at 25,376, 25,213, and 24,686. These may be safer areas to get into the equity markets on support levels slowly.

▪ RESISTANCE LEVEL ON THE S&P 500 IS 2944, 2954.71 and 302 . If there is a favorable tariff settlement, the market should rise short term.

THE BOTTOM LINE:

The S&P 500 is currently about 2.2% below my Very Cautious signal of 2954. The market should be volatile especially with seasonal patterns of August through the end of October being seasonally weak. With the inverted yield curve and hints of recession over the next 1.5 years investors should be somewhat cautious over the shorter term unless the S&P 500 closes above 2944 and more if it closes about 2954.71 and stays there for a couple of days with heavy volume. It looks like the market wants to goes up but with tweets coming out hourly, market timing will be more difficult. If things come in as Trump expects, watch for a solid rally possibly to the old highs. But there are headwinds currently short term.

Best to all of you,

Joe

Joe Bartosiewicz, CFP®

5 Colby Way
Avon, CT 06001
860-940-7020 or 860-404-0408

Investment Advisor Representative

SECURITIES AND ADVISORY SERVICES OFFERED THROUGH SAGE POINT FINANCIAL INC., MEMBER FINRA/SIPC, AND SEC-REGISTERED INVESTMENT ADVISOR.
Charts provided by AIQ Systems:

Technical Analysis is based on a study of historical price movements and past trend patterns. There is no assurance that these market changes or trends can or will be duplicated shortly. It logically follows that historical precedent does not guarantee future results. Conclusions expressed in the Technical Analysis section are personal opinions: and may not be construed as recommendations to buy or sell anything.

Disclaimer: The views expressed are not necessarily the view of Sage Point Financial, Inc. and should not be interpreted directly or indirectly as an offer to buy or sell any securities mentioned herein. Securities and Advisory services offered through Sage Point Financial Inc., Member FINRA/SIPC, and SEC-registered investment advisor.

Hello Everyone,

I apologize for getting my newsletter out a week later than usual, my family had a needed short vacation.

Now for the good news, last month I stated that I was bullish on the markets and said I thought the markets would break out of the old 2886 level on the S&P and go to the 2954 level and possibly go to new highs. See last month’s Bartometer. The good news is the S&P is now at new highs and up another 6% since last month. The not so good news is that the small to midcap stocks are NOT at a new high and this divergence is showing me that we have a select narrow rally. The Small Cap index is 10% below its old top hit on 09/28/21018.

The Midcap Index is down 4.7% from last September as well. What does this mean? It means that there is a divergence in the stock market, and most of the participation is in the very large stocks like Microsoft, Netflix, etc. Even though this divergence is happening, my computer models are still somewhat bullish. Is it changing? You’ll see the answer in the chart below

Source: CNBC.com

Interest Outlook

As the major indexes reached all new highs, the Fed Chairman confirmed that the Fed would accept the lead from financial markets and cut their target interest rate by ¼%. Even though the Fed may reduce interest rates, there are many problems with Powell’s statements. His comments do not bode well for future moves. Especially if the economy goes into a recession over the next year or more. At this time long term rates should continue to be stabilized.

CURRENT EVENTS INFLUENCING MARKET MOVEMENT:

The Chinese tariff situation has calmed down somewhat allowing the markets to continue to rise as earnings from U.S. companies continue to grow. Overall the economy is doing relatively well. With a potential slowing of earnings ahead, the stock markets are now somewhat overbought. If interest rates stay at this very low level, then the stock market is still a decent value, but if interest rates start to head higher, the stock market ascent will then be over for a while. Overall, things look okay.

Index Averages

Some of the INDEXES of the markets both equities and interest rates are below. The source is Morningstar.com up until July 12, 2019. These are passive indexes.

*Dow Jones +18%
S&P 500 +21%
NASDAQ Aggressive growth +25%
I Shares Russell 2000 ETF (IWM) Small cap +17%
International Index (MSCI – EAFE ex USA) +11%
Moderate Mutual Fund +11%
Investment Grade Bonds (AAA) + 7% +2.64%
High Yield Merrill Lynch High Yield Index +9% +4.26%
Floating Rate Bond Index +5% +2.60%
Fixed Bond Yields (10 year) +2.% Yield 2.63%
The average Moderate Fund is up 11.6% this year fully invested as a 60% in
stocks and 40% in bonds. And nothing in the money market
*Explanation of each on the last page

The S&P 500
Source: AIQ Systems on graphs

The S&P 500 has broken out to a new high last month on the Bartometer I was Bullish and stated that my computer models went to a Buy signal on June 4th at 2800 on the S&P 500. Now it is 3014. My computer models are still on the BUY-HOLD but the market is now getting very OVERBOUGHT and if I were in the market now I would start to take some money off the table and rebalance if you are in retirement.

The S&P 500 could go to 3130 to 3180 this year, but that would be a stretch and I don’t think the market has that much growth now for the rest of the year. Maybe 3-7% if that.

Notice the two trend-lines above at the top right of the top chart. There are two rising trend-lines, the blue arrow is pointing to it. This is call a RISING WEDGE. A Rising Wedge is a NEGATIVE pattern IF the trend-line is broken on the down side. This is a pattern that can be VOIDED if the S&P 500 closes above 3019 -3022 for 2-3 days with heavy volume. On the other hand, it the S&P 500 breaks below 2979, I will be getting Cautious. If it closes below 2979 then 2954 better hold or I will be getting VERY
CAUTIOUS. But remember if the market closes above 3019-3022 for 2 to 3 days with good volume then the pattern is voided.

This market is extended, so even though I am relatively still positive, I’ll let the market tell me what to do. So if the S&P Closes below 2979 I am getting Cautious, and a close below 2954 decisively, then I am getting Very Cautious. That means a trimming of your assets, or a partial sell and to transfer to more of a conservative account. Right now I am still BULLISH.

The second chart below is the MACD, a cross down could correspond with the breaking of 2954 DECISIVELY on a close. Notice in June it crossed above, see blue arrow, this was a great place to BUY. Now that it is much higher and with the extension of the market I gave you the information as to where the market could reverse and what to look for.

Chart Source: Forexop.com

The rising wedge pattern is characterized by a chart pattern which forms when the market makes higher highs and higher lows with a contracting range. When this pattern is found in an uptrend, it is considered a reversal pattern, as the contraction of the range indicates that the uptrend is losing strength.

When this pattern is found in a downtrend, it is considered a bearish pattern, as the market range becomes narrower into the correction, indicating that the correction is losing strength and that the resumption of the downtrend is in the making.

In a rising wedge, both boundary lines slant up from left to right. Although both lines point in the same direction, the lower line rises at a steeper angle than the upper one. Prices usually decline after breaking through the lower boundary line.

As far as volumes are concerned, they keep on declining with each new price advance or wave up, indicating that the demand is weakening at the higher price level. A rising wedge is more reliable when found in a bearish market. In a bullish trend what seems to be a Rising Wedge may be a Flag or a Pennant (stepbrother of a wedge) requiring about four weeks to complete.

Rising Wedges are not guaranteed, so the 3019-3022 level and staying there for a couple of days could void this negative pattern. A break decisively on a close below 2979 could satisfy the Rising Wedge.

Source: Wikipedia

*A Support or support level is the level at which buyers tend to purchase or into a stock or index. It refers to the stock share price that a company or index should hold and start to rise. When a price of the stock falls towards its support level, the support level holds and is confirmed, or the stock continues to decline, and the support level must change.

• Support levels on the S&P 500 area are 2986, 2954, 2910, and 2780 areas. These might be BUY areas.
• Support levels on the NASDAQ are 8175, 7884, 7771, and 7657.
• On the Dow Jones support is at 26918, 26708, 25,538 and 26318.

These may be safer areas to get into the equity markets on support levels slowly. RESISTANCE LEVEL ON THE S&P 500 IS 3019 but rising as market goes up. If there is a favorable tariff settlement, the market should rise short term.

Source: Investopedia

THE BOTTOM LINE:

The S&P 500 has reached a new high, and as long as 2954 does not break down decisively with a lot a volume I am still relatively positive. We are positively OVERBOUGHT here short, so THIS IS NOT A TIME TO BUY a lot of Indexes here in my opinion I am still relatively Bullish.

The S&P needs to close above 3019-3022 and stay there two days to form another base from which to rise more, but if the S&P breaks below 2979, and daily this trend-line is rising, I will be getting Cautious, and a convincing close below 2954 will get me Very Cautious.

Best to all of you,
Joe
Joe Bartosiewicz, CFP®
Investment Advisor Representative

860-940-7020 or 860-404-0408

SECURITIES AND ADVISORY SERVICES OFFERED THROUGH SAGE POINT FINANCIAL INC., MEMBER FINRA/SIPC, AND SEC-REGISTERED INVESTMENT ADVISOR.
Charts provided by AIQ Systems:
Technical Analysis is based on a study of historical price movements and past trend patterns. There is no assurance that these market changes or trends can or will be duplicated shortly. It logically follows that historical precedent does not guarantee future results. Conclusions expressed in the Technical Analysis section are personal opinions: and may not be construed as recommendations to buy or sell anything.
Disclaimer: The views expressed are not necessarily the view of Sage Point Financial, Inc. and should not be interpreted directly or indirectly as an offer to buy or sell any securities mentioned herein. Securities and Advisory services offered through Sage Point Financial Inc., Member FINRA/SIPC, an SEC-registered investment advisor.
Past performance cannot guarantee future results. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please note that individual situations can vary. Therefore, the information presented in this letter should only be relied upon when coordinated with individual professional advice. *There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.
It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.
The price of commodities is subject to substantial price fluctuations of short periods and may be affected by unpredictable international monetary and political policies. The market for commodities is widely unregulated, and concentrated investing may lead to Sector investing may involve a greater degree of risk than investments with broader diversification.
Indexes cannot be invested indirectly, are unmanaged, and do not incur management fees, costs, and expenses.
Dow Jones Industrial Average: A weighted price average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.
S&P 500: The S&P 500 is an unmanaged indexed comprised of 500 widely held securities considered to be representative of the stock market in general.
NASDAQ: the NASDAQ Composite Index is an unmanaged, market-weighted index of all over the counter common stocks traded on the National Association of Securities Dealers Automated Quotation System
(IWM) I Shares Russell 2000 ETF: Which tracks the Russell 2000 index: which measures the performance of the small capitalization sector of the U.S. equity market.
A Moderate Mutual Fund risk mutual has approximately 50-70% of its portfolio in different equities, from growth, income stocks, international and emerging markets stocks to 30-50% of its portfolio indifferent categories of bonds and cash. It seeks capital appreciation with a low to moderate level of current income.
The Merrill Lynch High Yield Master Index: A broad-based measure of the performance of non-investment grade US Bonds
MSCI EAFE: the MSCI EAFE Index (Morgan Stanley Capital International Europe, Australia, and Far East Index) is a widely recognized benchmark of non-US markets. It is an unmanaged index composed of a sample of companies’ representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends.
Investment grade bond index: The S&P 500 Investment-grade corporate bond index, a sub-index of the S&P 500 Bond Index, seeks to measure the performance of the US corporate debt issued by constituents in the S&P 500 with an investment grade rating. The S&P 500 Bond index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large cap US equities.
Floating Rate Bond Index is a rule-based, market-value weighted index engineered to measure the performance and characteristics of floating rate coupon U.S. Treasuries which have a maturity greater than 12 months.
Joe Bartosiewicz, CFP®
5 Colby Way
Avon, CT 06001
860-940-7020 or 860-404-0408

May 5, 2019

Hello Everyone

2019 has rewarded us with average portfolio returns in a Moderate portfolio category between 8-14% so far since January 1, 2019*. A Moderate portfolio is a mutual fund portfolio with approximately 50-60% stocks and 30-40% bonds.

MARKET RECAP:

Since last month my computer models see the trends of the stock markets as Somewhat Cautious. Most of the sectors of the markets are at or near the old high of last September except:

• The healthcare sector is down 7% from last year’s high
• The small-cap sector is down 7%
• The midcap sector is down 3% and a few more.However, overall, the indexes are at or near their old high, and this is where we need to address as to whether the markets will breakout or top out here and head lower. With the markets up so much from the lows in December, stocks are overdue for some consolidation following the major rally this year and at its old highs of last September**.
• **See charts below as to whether the markets are overvalued and could sell off or continue to rise.

Where do we stand from an economic stance?

1. The economy is still doing well:
   • Job growth is outstanding with 263,000 new jobs created last month
   • Unemployment at 3.6% is the lowest it has been in decades, and most economic measures are overall healthy.
   • The tax reduction to corporations is making earnings rise
   • The USA is enjoying the best overall economy in the world currently.Most of the economic surveys conducted suggested that the main problem with the markets is uncertainty with trade with China. The uncertainty could positively drop the markets down if the Trade War is not resolved in a positive outcome. Our economy has risen on an overall uptrend for about ten years, and it is overdue for a recession sometime over the next 1.5 to 3 years, but nothing seems to be on the horizon in the very near future.
2. Interest rates remain relatively stable, and the most likely near-term outlook is for continued stability.

Index Averages

Some of the INDEXES of the markets both equities and interest rates are below. The source is Morningstar.com up until May 4, 2019. These are passive indexes.

If interest rates are peaking and look to be flattening or declining over the next year then investment grade or multisector bonds technically might be better than floating rate bonds. But diversification is important.

The S&P is above. Notice the trend line in white. The technical indicators are Somewhat Cautious, in addition, this is not a time to add a good deal of money to the market. If you can see the white horizontal line at the top of the picture you will see that it corresponds with the high hit last September in the market. The old high hit on May 1, 2019 of 2954 intraday has to be broken through with a lot of volume or the S&P 500 could start to rollover. IMPORTANT, If 2904 is broken on close I will be getting more Cautious, if it closes below 2886, I will be getting Very Cautious as it would have clearly broken the 2019 Trend line. At that point, there would be some Buying support at 2852 its 50 day moving average.

The next graph underneath the S&P 500 shows the Momentum of the market is flattening out. This is also an indicator that the market is still good, but losing a little of the upside momentum and could fall here.

THE BOTTOM LINE:

The S&P 500 is right at its old high it hit last September. Traders are looking at this area very carefully as to whether it will break out of the 2954 number and follow through on the upside. I am Cautious on the market unless the S&P 500 rallies above the 2954 level on the S&P 500 and stays above that level for a least 2 to 3 days. If the S&P 500 closes below 2886 I would reduce some equity exposure as it would have broken a significant trend line and could push the S&P in a downtrend again. As for interest rates, they are back down to 2.55% on the ten-year bond. The tariff situation if not resolved would give investors a chance to sell and push the market lower. Other than that outside of ongoing political issues, the economy is doing relatively well, and a recession is not on the horizon, at least not over the next year. If you are a longer-term investor, stay the course, if you are in or nearing retirement, you may want to sell 10% of your holdings and rebalance your portfolio.

*A Support or support level is the level at which buyers tend to purchase or into a stock or index. It refers to the stock share price that a company or index should hold and start to rise. When a price of the stock falls towards its support level, the support level holds and is confirmed, or the stock continues to decline, and the support level must change.

Source: Investopedia

Support levels on the S&P 500 area are 2910, 2850, 2800, 2766, 2676 and 2600 areas. These might be BUY areas.

Support levels on the NASDAQ are 7979, 7801, 7572, and 7410.

On the Dow Jones support is at 26,240, 25856, 25,471 and 25,120. These may be safer areas to get into the equity markets on support levels slowly.

RESISTANCE LEVEL ON THE S&P 500 IS 2740. If there is a favorable tariff settlement, the market should rise short term.

Best to all of you,

Joe

Joe Bartosiewicz, CFP®

Investment Advisor Representative

Contact information:

Joe Bartosiewicz, FP®5, Colby Way Avon, CT 06001

SECURITIES AND ADVISORY SERVICES OFFERED THROUGH SAGE POINT FINANCIAL INC., MEMBER FINRA/SIPC, AND SEC-REGISTERED INVESTMENT ADVISOR.

Charts provided by AIQ Systems:

Technical Analysis is based on a study of historical price movements and past trend patterns. There is no assurance that these market changes or trends can or will be duplicated shortly. It logically follows that historical precedent does not guarantee future results. Conclusions expressed in the Technical Analysis section are personal opinions: and may not be construed as recommendations to buy or sell anything.

Disclaimer: The views expressed are not necessarily the view of Sage Point Financial, Inc. and should not be interpreted directly or indirectly as an offer to buy or sell any securities mentioned herein. Securities and Advisory services offered through Sage Point Financial Inc., Member FINRA/SIPC, an SEC- registered investment advisor.

Past performance cannot guarantee future results. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please note that individual situations can vary. Therefore, the information presented in this letter should only be relied upon when coordinated with individual professional advice. *There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.

It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.

The price of commodities is subject to substantial price fluctuations of short periods and may be affected by unpredictable international monetary and political policies. The market for commodities is widely unregulated and concentrated investing may lead to Sector investing may involve a greater degree of risk than investments with broader diversification.

Indexes cannot be invested indirectly, are unmanaged and do not incur management fees, costs, and expenses.

Dow Jones Industrial Average: A weighted price average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.

S&P 500: The S&P 500 is an unmanaged indexed comprised of 500 widely held securities considered to be representative of the stock market in general.

NASDAQ: the NASDAQ Composite Index is an unmanaged, market-weighted index of all over the counter common stocks traded on the National Association of Securities Dealers Automated Quotation System

(IWM) I Shares Russell 2000 ETF: Which tracks the Russell 2000 index: which measures the performance of the small capitalization sector of the U.S. equity market.

A Moderate Mutual Fund risk mutual has approximately 50-70% of its portfolio in different equities, from growth, income stocks, international and emerging markets stocks to 30-50% of its portfolio indifferent categories of bonds and cash. It seeks capital appreciation with a low to moderate level of current income.

The Merrill Lynch High Yield Master Index: A broad-based measure of the performance of non-investment grade US Bonds

MSCI EAFE: the MSCI EAFE Index (Morgan Stanley Capital International Europe, Australia, and Far East Index) is a widely recognized benchmark of non-US markets. It is an unmanaged index composed of a sample of companies’ representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends.

Investment grade bond index: The S&P 500 Investment-grade corporate bond index, a sub-index of the S&P 500 Bond Index, seeks to measure the performance of the US corporate debt issued by constituents in the S&P 500 with an investment grade rating. The S&P 500 Bond index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large cap US equities.

Floating Rate Bond Index is a rule-based, market-value weighted index engineered to measure the performance and characteristics of floating rate coupon U.S. Treasuries which have a maturity greater than 12 months.

Short Term Corporate Bond ETFs seek to track the shorter maturity side of the corporate bond market. These are debt securities issued by companies and can include investment-grade debt, lower-quality junk or high-yield bonds. Short-term bonds are generally defined as those with maturities of less than five years coupon U.S. Treasuries which have a maturity greater than 12 months.

The 10–year Treasury note is a debt obligation issued by the United States government with a maturity of 10 years upon initial issuance. A 10–year Treasury note pays interest at a fixed rate once every six months, and pays the face value to the holder at maturity.