|Bid||87.85 x 21500|
|Ask||87.92 x 2200|
|Day's Range||87.63 - 87.94|
|52 Week Range||76.49 - 89.32|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||5.58%|
|Beta (5Y Monthly)||1.01|
|Expense Ratio (net)||0.03%|
AT&T (T) honcho Randall Stephenson landed a complimentary insult from the chief executive of the United States two weeks ago when he announced he was standing down at 59. Randall Stephenson, the CEO of heavily indebted AT&T, which owns and presides over Fake News @CNN, is leaving, or was forced out. Don’t tell the president, but Stephenson will not be crying into his face mask after he leaves.
“I think one of the biggest stories we’ve seen, particularly from last year or so, has been flows into fixed-income products. It feels like folks are starting to understand that market, and the market continues to evolve,” Ryan Ludt, Global Head of ETF Capital Markets and Index Relations, Vanguard, said at the Inside ETFs conference. According to XTF data, Vanguard fixed-income ETFs attracted $34.6 billion in net inflows in the past year. Among its most popular bond ETF plays, the Vanguard Total Bond Market ETF (BND A) attracted $9.9 billion in inflows over the past year. BND provides investors with broad exposure to U.S. investment-grade bonds and can act as a core component in any long-term investment strategy, helping investors produce reliable income. The Vanguard Total International Bond Index Fund ETF Shares (BNDX A-) also brought in $9.6 billion in inflows over the past year. BNDX seeks to track the performance of a benchmark index that measures the investment return of international non-U.S. dollar-denominated investment-grade bonds. Additionally, the ETF includes a U.S. dollar currency hedge to limit the harmful effects of foreign exchange or forex swings. Additionally, the Vanguard Short-Term Government Bond ETF (VGSH A) saw $3.4 billion in net inflows. VGSH tracks short-term Treasuries, which provides in a portfolio carrying very little interest-rate and credit risk. While this fund will not generate spectacular results, it will deliver consistent returns and provide strong downside protection.
Bond mutual and exchange-traded funds can react very differently in times of market volatility, even when they own the same securities. That’s a problem. Here’s why.
Building wealth is essential to accomplish a variety of goals, from sending your kids to college to retiring in style. But establishing a solid financial foundation will also help you survive stock market corrections and bear markets, recessions, health emergencies and other setbacks.Our plan outlined here covers every aspect of your financial life, from investing to insurance to building credit. Most of our advice is basic, because a strong foundation sets you up to reach your financial goals. If you're just starting out, these fundamentals should stay with you throughout your wealth-building journey, although they will likely evolve along with your situation. Even if you have been practicing sound financial principles for decades, all of us can use a refresher every now and then. See Also: Money Moves to Make Right Now in the Wake of the Coronavirus Outbreak
As the stock market continues to take a beating, nervous investors look to bond mutual funds and exchange-traded funds (ETFs) for protection and sanity. After all, fixed income typically provides regular cash and lower volatility when markets hit turbulence.And the markets are absolutely hitting turbulence. For instance, between Feb. 19 and March 10, not only did the S&P; 500 experience a historically rapid loss of 14.8% - it experienced a dramatic rise in volatility, too, hitting its highest level on that front since 2011, says Jodie Gunzberg, chief investment strategist at New York-based Graystone Consulting, a Morgan Stanley business. The index's losses and volatility have escalated even more since then.Bonds offer ballast - "not only downside protection but also moderate upside potential as investors tend to seek out the safety of U.S. government and investment-grade corporate bonds amid stock market uncertainty" - says Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA, a New York-based investment research company.Bond prices often are uncorrelated to equities. Stocks typically do well in periods of economic growth, whereas bonds typically do well in periods of declining economic activity, Gunzberg says."Even though the current 30-day correlation has risen between stocks and bonds, the correlation between the S&P; 500 and the S&P; U.S. Aggregate Bond Index is still negative," she says. "Bonds are strong diversifiers, with the exception of high yield (junk), when added to a portfolio of equities throughout different economic scenarios." Indeed, junk debt has been punished severely of late.Here are 12 bond mutual funds and bond ETFs to buy. These funds offer diversified portfolios of hundreds if not thousands of bonds, and most primarily rely on debt such as Treasuries and other investment-grade bonds. Just remember: This is an unprecedented environment, and even the bond market is acting unusually in some areas, so be especially mindful of your own risk tolerance. SEE ALSO: The 25 Best Low-Fee Mutual Funds to Buy in 2020
Some mutual funds are more appropriate than others for core bond holdings. Credit risk and expense ratios for mutual funds can impact investor returns.
With the Federal Reserve keeping rates unchanged in its latest interest rate policy decision, it might be unclear what investors should do when it comes to interest rates in 2020 as 2019 winds down. However, if one were to follow the herd, then diving into bonds irrespective of what the Fed does in 2020 is the way to go.
Treasury yields moved higher following the announcement of a “phase one” deal agreed to in principle between the U.S. and China on Thursday. However, what yields will do in 2020 will depend on who you ask.
Bond ETFs have enjoyed one of their best years yet, attracting higher investment interest than the equity ETF side this year. Fixed-income ETFs, which only make up a slice of the overall ETF universe, have for the first time brought in more money inflows than the stock ETF side after investors funneled $191 billion into bond ETFs over the first 10 months of the year, compared to the less than $158 billion that flowed into equity ETFs, the Financial Times reports. “Adoption rates have accelerated noticeably as more investors have realised that fixed income ETFs can provide efficient solutions to some of the liquidity challenges of cash bond markets,” Deborah Fuhr, co-founder of ETFGI, told the Financial Times.
With the Federal Reserve keeping rates unchanged in its latest interest rate policy decision, it might be unclear what investors should do when it comes to interest rates in 2020 as 2019 winds down. Investors continue to pour capital into bond funds and 2020 could be another banner year for fixed income. "Investors continue to pile into bond funds as 2019 winds down and as one of the biggest fund companies by assets under management, Vanguard bond funds have likely received much of investor's savings," a U.S. News & World Report article by Debbie Carlson said.
The Cboe Volatility Index is widely used as an indicator of measuring the ebbs and flows of volatility in the markets. iShares Gold Trust (IAU) : seeks to reflect generally the performance of the price of gold and the performance before payment of the Trust’s expenses and liabilities. The Trust does not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the price of gold.
Fixed income funds are aplenty in the ETF world, but in today’s market, it’s necessary to get strategic as opposed to simply throwing darts at a board of bond ETFs. A pair of ETFs an investor may want to consider for core as well as short-term exposure are the Vanguard Total Bond Market Index Fund ETF Shares (BND A) and the Vanguard Short-Term Bond Index Fund ETF Shares (BSV A).
A pair of ETFs an investor may want to consider for core as well as short-term exposure are the Vanguard Total Bond Market Index Fund ETF Shares (BND) and the Vanguard Short-Term Bond Index Fund ETF Shares (BSV) . BND gives investors that core bond exposure that spans across a variety of debt issues that fall within the investment-grade category. “So, I like this fund because it offers broad exposure to the U.S. investment-grade bond market,” said Alex Bryan, Morningstar's director of passive strategies research in North America.
Mutual funds almost go hand-in-hand with retirement investing. And why not? The modern mutual fund predates exchange-traded funds (ETFs) by more than six decades. Most 401(k) plans hold nothing but mutual funds. So it's reasonable to link one with the other.But don't sleep on exchange-traded funds. As you'll soon find out, while many of the best ETFs out there are tactical strategies and great trading vehicles, some of them are dirt-cheap, long-term buy-and-hold dynamos that can give investors what they need in retirement: diversification, protection and income.Many (though not all) ETFs are simple index funds - they track a rules-based benchmark of stocks, bonds or other investments. It's an inexpensive strategy because you're not paying managers to analyze and select stocks. And it works. In 2018, the majority of large-cap funds (64.5%) underperformed Standard & Poor's 500-stock index - the ninth consecutive year that most of them failed to beat the benchmark.Today, we'll look at seven of the best ETFs for retirement. This small group of funds covers several assets: stocks, bonds, preferred stock and real estate. Which ones you buy and how much you allocate to each ETF depend on your individual goal, be they wealth preservation, income generation or growth. SEE ALSO: The Kip ETF 20: The 20 Best Cheap ETFs You Can Buy