The US Treasury 5-Year Note ETF (NASDAQ:UFIV) experienced a modest increase of 0.2% on December 3, 2023, closing at $49.40. This rise comes despite a significant drop in trading volume, with only approximately 3,833 shares exchanged during the day, representing a decline of 73% from the average daily volume of 14,194 shares.
Investors have shown some interest in the ETF, which had previously closed at $49.31. The fund’s performance has been closely monitored, particularly its 50-day simple moving average of $49.45 and 200-day simple moving average of $49.23, indicating stability in its recent trading patterns.
Dividend Announcement and Investor Activity
On the same day, the ETF announced a monthly dividend of $0.1301, which was distributed to investors of record as of December 2, 2023. This payout translates to an annualized yield of 3.2%. The ex-dividend date was also set for December 2, allowing investors to assess the fund’s commitment to returning value to shareholders.
In a sign of growing institutional interest, Huntington National Bank recently increased its position in the US Treasury 5-Year Note ETF by 30.3% in the second quarter of 2023. According to the bank’s Form 13F filing with the Securities and Exchange Commission (SEC), it now holds 2,467 shares of the ETF, valued at approximately $121,000. This move underscores the potential attractiveness of the ETF for institutional investors seeking fixed income options.
Understanding the US Treasury 5-Year Note ETF
The US Treasury 5-Year Note ETF is designed to track the ICE BofA Current 5-Year US Treasury index. This passively managed fund focuses specifically on the most recently issued, on-the-run, 5-year US Treasury note. Launched on March 28, 2023, by US Benchmark Series, the ETF caters to investors who require precise alignment with the 5-year tenor on the yield curve.
As the market continues to navigate economic uncertainties, the US Treasury 5-Year Note ETF remains a focal point for those looking for stable investment opportunities in government securities. Its recent performance, coupled with institutional interest, may indicate a positive outlook as investors assess the broader economic landscape.
