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SOFR

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1d
1w
1m

Analysis and statistics

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About

SOFR.US typically refers to financial products tied to the Secured Overnight Financing Rate (SOFR), a benchmark interest rate that is used as an alternative to the London Interbank Offered Rate (LIBOR). These products include, but are not limited to, SOFR futures contracts traded on exchanges like the CME Group, SOFR-linked bonds issued by various entities (corporations, government agencies, etc.), and SOFR-based interest rate swaps. The price of these instruments fluctuate based on market expectations of future SOFR rates, which are influenced by factors such as monetary policy decisions made by the Federal Reserve and overall economic conditions. Investors and financial institutions use SOFR-linked products for hedging interest rate risk, speculating on rate movements, and pricing loans and other financial contracts.
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Factors

SOFR rate changes: SOFR.US ETFs track the Secured Overnight Financing Rate (SOFR). As SOFR rises, the ETF's yield and price typically increase, and vice-versa.

Supply and demand: Increased demand for SOFR.US ETFs can drive up the price, while increased supply (more shares available) can lower it.

Market sentiment: Overall investor confidence and risk appetite can impact demand for fixed-income assets like SOFR.US ETFs. Flight to safety can increase demand.

ETF expense ratio: The ETF's operating costs can slightly lower its overall return and thus affect its market price relative to other similar investments.

Credit risk perceptions: While SOFR is considered low-risk, changes in broader credit market conditions can still influence investor appetite and therefore ETF pricing.

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