|Bid||107.50 x 4000|
|Ask||109.80 x 4000|
|Day's Range||108.16 - 108.29|
|52 Week Range||103.94 - 109.18|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.05%|
The adage "the more things change, the more things stay the same" could relate to the Federal Reserve's 2018-19 interest rate policy--it kept changing (higher) in 2018 and now the capital markets expect them to stay unchanged through 2019. The survey revealed that investment-grade debt and short duration were the prime focus.
BAML Survey: How Are Global Fund Managers Positioned?(Continued from Prior Part)Investors’ expectations of the Fed According to the Bank of America Merrill Lynch survey for April, 53% of the fund managers surveyed don’t see the Federal Reserve
The Federal Reserve has been putting its more dovish side on display, which pivots from 2018's rate-hiking bonanza. In addition, fixed income investors are facing other challenges like inverted yield curves and signs of slowing global growth. Given these challenges, how do investors approach the bond markets?
Why Jeffrey Gundlach Thinks Now's a Good Selling Opportunity(Continued from Prior Part)Jeffrey Gundlach on next presidential elections Jeffrey Gundlach accurately predicted Donald Trump’s victory in the 2016 elections. While talking about his
Why Jeffrey Gundlach Thinks Now's a Good Selling Opportunity(Continued from Prior Part)Jeffrey Gundlach on the next downturn Jeffrey Gundlach believes that if equities do well this year, emerging market equities will do better than US stocks (SPY)
Why Jeffrey Gundlach Thinks Now's a Good Selling Opportunity(Continued from Prior Part)Jeffrey Gundlach on central banks Jeffrey Gundlach presented his views on central banks’ policies and how they impact investments during his interview with The
What’s an investor to do when 10 years into an economic recovery, global economies and markets still need low rates and government “stimulus”? This week, the International Monetary Fund lowered its forecast for global GDP growth for the third time in six months. The pattern is clear: As soon as governments or central banks turn off the monetary spigot or try to return to “normal” policies, markets and economies falter.
The following is our latest Fund Analyst Report for Fidelity U.S. Bond Index FXNAX . Fidelity U.S. Bond Index is a compelling core bond strategy. While its index-tracking performance hasn't been quite as strong as some of its index peers, its sizable cost advantage and conservative credit risk should serve investors well over the long term.
Strong Economy and a Rate Cut: Can Trump Have It Both Ways?(Continued from Prior Part)Trump believes the economy is doing “unbelievably well” Today, President Donald Trump told reporters, “Our country’s doing unbelievably well
It's no doubt that the volatility-laden fourth quarter of 2018 spurred an investor move to bonds, but that trend persisted in the first quarter of 2019 with $34.5 billion going into fixed income exchange-traded funds (ETFs), according to a US-Listed Flash Flows Report from State Street Global Advisors. It provided more evidence that investors are picking themselves up in 2019 after a tumultuous way to end 2018. In 2019, investors are no doubt reassessing their strategies for how to distribute their capital through the rest of the year.
Inversion of Yield Curve: Analysts Are Split on Recession Signals(Continued from Prior Part)BMO Capital Markets BMO chief economist Tom Porcelli discussed his take on the current yield inversion and the implications for the markets. As reported by
Markets Looking at US-China Trade Talks amid Slowdown Concerns(Continued from Prior Part)US-China trade talksToday, another round of trade talks started in Beijing. Markets are hoping for a quick resolution to the remaining trade differences, but
Could Falling US Consumer Confidence Mean a Recession Ahead?US consumer confidence The Conference Board updated the US consumer confidence index yesterday. The confidence index hit a 16-month low at 124.1 in March. Economists were expecting it to
Now that the Federal Reserve is moderating its monetary policy, and the yield curve has turned negative for the first time since 2007, the best bond funds to buy are also beginning to shift.As recently as the third quarter of 2018, it appeared as if the Fed would hike interest rates two or three times in 2019. By the beginning of 2019, the Fed's tone and outlook began to signal that one or two interest rate bumps during the year were the best bet. As of a few days ago, the Fed indicated it may not raise rates at all in 2019 but may possibly hike rates just once in 2020.What this means for bonds is that yields will moderate along with the Fed's policy. Moderating yields will in turn provide support, or even a lift, to bond prices. Translation: Now may be a good time to increase your exposure to bond funds.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Reasons to Buy Housing Stocks in 2019 With that backdrop in mind, here are the best bond funds to buy for a shifting interest rate environment: Best Bond Funds to Buy: iShares Core U.S. Aggregate Bond (AGG)Expenses: 0.05%, or $5 for every $10,000 investedSmart investors know, especially after the past year, that the interest rate environment is difficult to predict. This uncertainty makes a broadly diversified bond fund like iShares Core U.S. Aggregate Bond (NYSEARCA:AGG) a wise choice.AGG tracks the Bloomberg Barclays U.S. Aggregate Bond index, which covers the entire U.S. bond market of more than 7,000 bonds. Although the portfolio has a broad range of maturities and credit quality, the average weighted maturity is just under eight years and the average ratings are investment grade.This means that investors can reap the benefits of reduced market risk through diversification but also the potential price gains coming for a moderating rate environment. Vanguard Intermediate-Term Corporate Bond (VCIT)Source: Shutterstock Expenses: 0.07%As bonds come back into favor, corporate bonds typically outperform Treasury bonds and municipal bonds. This makes Vanguard Intermediate-Term Corporate Bond (NYSE:VCIT) a smart choice now.Treasury bonds and municipal bonds typically have lower yields than corporate bonds. They also generally have lower annualized returns, especially when investing for longer than one year. * 7 Marijuana Stocks to Play the CBD Trend Unless you are investing in a taxable brokerage account and need tax-free income, a low-cost corporate bond fund like VCIT is a great fund to hold now and in the long run. SPDR Nuveen Barclays Municipal Bond Index (TFI)Expenses: 0.23%Investors needing tax-free income at the Federal level should consider a low-cost, diversified bond fund like SPDR Nuveen Barclays Municipal Bond Index (NYSE:TFI).If you want to increase your exposure to bond funds to take advantage of moderating or falling interest rates, you'll need to be cautious about the tax implications. If you're investing in a taxable account and your top Federal tax rate is 32% or higher, a municipal bond fund like TFI can be a smart idea.Although municipal bonds typically have lower yields than corporate bonds, the tax-equivalent yield of municipal bonds (the yield a taxable fund would need in order to equal the tax-free yield of a municipal bond fund) can make sense.The SEC yield for TFI is a solid 2.1% and the tax-equivalent yield is 3.5%. PIMCO 25+ Year Zero Coupon U.S. Treasury Index (ZROZ)Expenses: 0.15%If you're not afraid of taking extra risk, a highly interest-rate-sensitive bond fund like PIMCO 25+ Year Zero Coupon U.S. Treasury Index (NYSEARCA:ZROZ) may be your best bet for out-sized returns.When interest rates are flattening and expected to fall, the bonds and bond funds with the greatest interest rate sensitivity typically see the biggest price gains. Bonds with long maturities will see bigger price gains than those with shorter maturities. Also zero-coupon bonds have greater interest rate sensitivity because they pay the investor zero interest until maturity. * 7 Beaten-Up Stocks to Buy as They Reverse Course Enter ZROZ. This ETF holds long-term zero-coupon bonds and will likely see the biggest jumps in price, assuming the interest rates remain flat and begin to decline in 2020 (or sooner). Vanguard Total Bond Market Index Admiral Shares (VBTLX)Source: Shutterstock Expenses: 0.05% Minimum Investment: $3,000For a low-cost, diversified bond mutual fund, it's tough to beat Vanguard Total Bond Market Index Admiral Shares (MUTF:VBTLX).Vanguard recently closed most of their Investor Shares mutual funds and made their lower-cost Admiral Shares available to investors with the same $3,000 minimum initial investment. This makes many of their mutual funds as cheap as the cheapest ETFs on the market.To get broad exposure to bonds without taking on too much interest-rate risk, VBTLX is an outstanding choice. The portfolio tracks the Bloomberg Barclays U.S. Aggregate Bond index, which consists of over 7,000 bonds, providing exposure to the entire U.S. bond market. Vanguard Long-Term Bond Index (VBLTX)Source: Shutterstock Expenses: 0.15% Minimum Investment: $3,000The best low-cost long-term bond mutual fund is arguably Vanguard Long-Term Bond Index (MUTF:VBLTX).As the Fed puts a hold on rate hikes, and the potential increases for rate cuts, long-term bond funds like VBLTX can be a smart move. This is because long-term bonds tend to have greater price increases than short- and intermediate-term bonds as interest rates begin to fall. * 10 Stocks on the Rise Heading Into the Second Quarter VBLTX tracks the Bloomberg Barclays U.S. Long Government/Credit Float Adjusted Index, which consists of more than 2,000 U.S. long-term bonds. In addition to potential for greater gain potential, the 3.8% trailing-12-month yield may be attractive to investors looking for income. Loomis Sayles Bond Retail (LSBRX)Source: Shutterstock Expenses: 0.91%If you're looking for a well-managed go-anywhere bond fund to compliment your core bond funds, Loomis Sayles Bond Retail (MUTF:LSBRX) can be a fine choice.The bond market is arguably more complex and more difficult to forecast than the stock market. This makes a solid case for investing in either a passively managed index fund or an actively managed fund with an outstanding manager at the helm. Some investors may choose to have the best of both and use a total market index fund for a core holding and a fund like LSBRX as a compliment.Diversification is especially important in uncertain interest rate environments, as is the case in 2019.LSBRX is managed by Dan Fuss, who has been at the helm of the fund for nearly 30 years and has been managing fixed income portfolios for over 50 years. The LSBRX portfolio consists of a wide range of maturities and credit quality. About two-thirds of the bonds are U.S. and the other one-third is non-U.S. bonds.As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities, although he held AGG and VBTLX in some client accounts. Under no circumstances does this information represent a recommendation to buy or sell securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks With Key Products That Face an Uncertain Future * 7 SaaS Stocks to Buy for Long-Term Gains * 5 Semiconductor Stocks That Are Scorching Hot Buys Compare Brokers The post The 7 Best Bond Funds to Buy for a Shift in Interest Rates appeared first on InvestorPlace.
The ETF marketplace has been trending towards lower and lower fees for some time now, but it’s never gotten as low as it has this past week. Most watchers figured that a 0% ETF was the next logical step in the fee war, but Salt Financial has passed that marker and gone straight into negative territory. It’s the first ETF that will actually pay you to invest in it but it comes with a catch! For a list of all new ETF launches, take a look at our ETF Launch Center. Here are the latest new fund launches:
Morgan Stanley: ‘Get Defensive’ on Inverted Yield CurvePotential slowdownAs reported by CNBC, Morgan Stanley (MS) equity strategist Michael Wilson said that investors should “remain defensively positioned,” as last week’s yield curve
A yield-scarce investing backdrop could prompt investors to look into more risky sectors of international bond markets.
Why Jeffrey Gundlach Thinks We're Still in a Bear Market(Continued from Prior Part)A “crackpot” ideaJeffrey Gundlach is very concerned about the increasing debt in the US economy. During the “Highway to Hell” webcast, he also completely
This is the case for all asset classes, whether it's equities or fixed income. One of the challenging aspects advisors face with this more cautious investor is the plethora of options available, especially in the exchange-traded fund (ETF) space. Where are the opportunities in equities and bonds in ETFs given the current market landscape?
U.S. bonds rose on Tuesday after data from the Institute for Supply Management revealed that the services sector expanded by 5.3 percent during the month of February, according to its non-manufacturing index. According to Larry Milstein, head of government and agency trading at R.W. Pressprich & Co, bond investors are basically taking a wait-and-see approach with respect to interest rates before making any moves. Last week, Federal Reserve Chairman Jerome Powell said that “crosscurrents and conflicting signals” are warranting a patient approach with respect to interest rate policy.
Why Ray Dalio Is Less Worried about a US Recession NowRecession fears One of the key market questions on investors’ and market participants’ minds is if we will enter a recession in 2019 or 2020. As the US equity markets (IVV) joined the global
With 2018’s year-end sell-offs in U.S. equities, investors are giving value investing a closer look in 2019. While investors are flocking to safe haven assets like bonds, there’s still a need for products that capture the upside potential in U.S. equities. As a result of 2018’s bull market run, the quality factor often goes overlooked compared to growth and value, but with market volatility still a primary consideration and many investors favoring defensive sectors, quality stocks and the related ETFs are worth examining in 2019.
Gundlach: Could US Economic Indicators Be Signaling a Recession?(Continued from Prior Part)Gundlach still thinks we’re in a bear marketIn December, Gundlach said, “I’m pretty sure this is a bear market.” He pointed out that even FAANG