|Bid||0.00 x 3100|
|Ask||0.00 x 3100|
|Day's Range||78.89 - 78.98|
|52 Week Range||78.30 - 82.71|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.05%|
The Conference Board Leading Economic Index (or LEI) is a monthly economic series that helps track any changes to the US business cycle. The Conference Board is an independent business membership and research institute that prepares these reports for different economies. In this series, we’ll analyze the changes to the LEI and assess whether the economic model is signaling any changes to the US business cycle.
There is one economic measure at China’s dispense that could force the Trump administration to back away from its aggressive trade policy. This measure could dangerous, and not just for the United States, but for the global financial system.
President Trump’s imposition of tariffs on China (MCHI) and key allies has rattled the markets (DIA) across the globe. China is the largest holder of US Treasuries (TLT). In March and April, several foreign governments reduced their US debt holdings—including T-bills—by $47.6 billion.
There’s a reason why money continues to flow into exchange-traded funds (ETFs) and other indexed products. Passive and indexed portfolios take the guesswork out of market-timing decisions because index funds own all the stocks within a certain market segment. Buying index funds on a regular schedule and sticking to that plan is one of the best things you do for your portfolio.
Vanguard, the second-largest U.S. issuer of exchange traded funds, said it is changing the listing venue for the Vanguard Total Bond Market ETF (BND) to Nasdaq from the New York Stock Exchagne (NYSE). BND, one of the largest fixed income ETFs in the U.S., will make the switch on or about July 26. “By moving BND to Nasdaq, Vanguard aims to achieve certain benefits, including trading and liquidity synergies among its suite of total bond market ETFs,” according to a statement from Pennsylvania-based Vanguard.
E*TRADE Financial Corporation today announced it has surpassed 250 commission-free ETFs with the addition of 46 ETFs from six providers to its Commission-Free ETF Pr
VALLEY FORGE, Pa., June 20, 2018 /PRNewswire/ -- Vanguard today announced plans to transfer the listing of the $36.7 billion Vanguard Total Bond Market ETF (BND) from NYSE Arca to Nasdaq on or about July 26, 2018. Until that time, Vanguard Total Bond Market ETF will continue to trade on NYSE Arca. By moving BND to Nasdaq, Vanguard aims to achieve certain benefits, including trading and liquidity synergies among its suite of total bond market ETFs.
When it comes to investing in ETFs, various investors are acclimated to using different metrics, fundamental or technical, when it comes down to screening for those with the best returns. One aspect that ...
The US bond market had a limited reaction to the Fed’s 25-basis-point rate hike and the 0.20% increase in interest paid on excess reserves. The spread between the US two-year and ten-year bonds narrowed to 36 basis points, which led to a further flattening of the yield curve in the previous week. The Vanguard Total Bond Market ETF (BND), which tracks the performance of the bond markets, rose 0.06% for the week ended June 15 and closed at 78.92.
The US Bureau of Labor Statistics releases a monthly report that tracks price trends in wholesale markets. The PPI (producer price index) is constructed using the inputs of a monthly survey of industries in the manufacturing sector (XLI). The survey consists of questions that determine changes in raw materials prices, production levels, and finished goods.
To begin with, the Fed is widely expected to announce an interest rate hike of 25 basis points at the end of its two-day meeting on Wednesday. Bulls and bears may debate on whether the Fed is likely to increase rates two more times after the June rate hike. During the Fed’s May meeting, the inflation (TIP) target was described as “symmetric,” suggesting that the 2% target would not be used to initiate any dramatic changes to US monetary policy.
With the unemployment rate at a low 3.8%, rising wages and a healthy inflation level, the markets are poised for another rate hike by the Federal Reserve. The federal funds rate is currently in the range of 1.5% to 1.75%, but an increase of a quarter of a percentage point is expected, but not guaranteed. On Wednesday, the Federal Reserve will release the most recent economic forecasts, which could hint at additional hikes.
The decisions of the US Fed and the European Central Bank (or ECB) will likely be in focus, as the Bank of Japan (or BOJ) is expected to keep policy unchanged. The US Fed is widely expected to increase rates by 25 basis points on Wednesday, and this information has likely been priced in already. The focus will likely be on the commentary regarding future rate hikes and how Fed members view rising inflation (TIP) and the current trade tensions.
The Federal Reserve has two major mandates—to maximize employment and maintain stable prices. There are no predefined levels for employment or prices, but the benchmark for employment has been an unemployment rate below 4.0%. The Fed set an inflation (TIP) target of 2.0% under the chairmanship of Ben Bernanke at the beginning of 2012.
Bonds can lose money, and having too much money in bonds can be a mistake. Owning bond funds isn't exactly the same as owning bonds.
Mark Zandi, the chief economist of Moody’s Analytics, said that US job growth remains strong but is slowing, as businesses are unable to fill the record number of job openings. The low unemployment rate is making it harder for businesses to find suitable employees, which is forcing them to offer higher wages, leading to an overheating economy. As per the May ADP employment report, job growth in the professional and business services sector continued to be the key driver for jobs additions.
The Bureau of Economic Analysis (or BEA) released its second estimate for real GDP for the first quarter on May 30. Although the reading was lower than consensus expectations, the reason for the decline was due to a decline in inventories, which could be considered a positive sign.
Rising interest rates have been the primary reason for the volatility in the real estate sector since the beginning of 2018. Despite their strong first-quarter turnaround and improving fundamentals—with marked increases in their funds from operations and net operating incomes—REITs have remained under selling pressure in 2018. The Vanguard Real Estate ETF (VNQ), which invests in a range of real estate assets including REITs, rebounded 4% in May as most REITs reported better-than-expected earnings.
The real estate sector (VNQ) has been lagging in performance in 2018. The reason for this decline has been the increase in interest rates and expectations of a higher interest rate in the future, which could dent demand in the real estate sector. The performance of the real estate sector has been a roller-coaster ride as interest rate expectations have continued to change with every incoming piece of data over the last few months.
The US bond market had some relief from its ongoing slide as the Fed’s May meeting minutes were less hawkish than expected. The Fed also wants to adjust the rate paid on excess reserves by 20 basis points on June 13, keeping the federal funds spread at 0.25%. Last week (ended May 25), the ten-year (IEF) yield closed at 2.9%, depreciating by 13 basis points.
The 3% ten-year bond yield isn’t a significant level for any reason—it’s a psychological level that has created some market frenzy. The continued increase in bond yields, however, has been worrying stakeholders in the housing (XHB) industry. Recent reports from the housing sector haven’t raised any red flags for the sector at this point, but continued increases in the 30-year mortgage rate along with rising home prices could push prospective buyers away once rates reach higher levels.
On Friday, two-year Italian bond yields rose 35 basis points in one day — almost equivalent to the entire range of the year for U.S. 10-year Treasurys.
In the above part, we discussed that Goldman Sachs (GS) is worried about the rising US fiscal deficit and US debt level. The rising fiscal deficit and debt level could pressure the Fed to increase its key interest rate at a faster rate. Recently, Goldman Sachs predicted that the interest rates will rise at a quicker pace.