57.56 +0.01 (0.01%)
After hours: 4:37PM EDT
|Bid||57.50 x 2900|
|Ask||57.65 x 4000|
|Day's Range||57.54 - 57.58|
|52 Week Range||54.06 - 57.65|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.63|
|Expense Ratio (net)||0.09%|
The National Weather Service makes 76 billion meteorological observations a year and mobilizes computing power 10,000 times greater than the Dell on your desk, but its basic forecasting horizon is a week to 10 days. The year is 1919, and you, looking for yield, take a flutter on the Republic of German-Austria 6s of 2019.
ETFs have become a go-to investment vehicle for many investors across a range of backgrounds, revealing the shifting trends in investors’ habits and thoughts in a changing market environment.
Index fund and exchange-traded fund (ETF) giant Vanguard said that it is planning to introduce the Vanguard Total World Bond ETF. The Vanguard Total World Bond ETF is expected to debut in the third quarter and will use an ETF of ETFs structure, an approach Vanguard previously applied with the Vanguard Total Corporate Bond ETF (VTC). VTC, which debuted in November, holds Vanguard's other three corporate bond ETFs – the Vanguard Short-Term Corporate Bond ETF (VCSH), Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard Long-Term Corporate Bond ETF (VCLT).
Another year, another batch of jaw-dropping inflows to Vanguard exchange-traded funds (ETFs) and index funds. Focusing on ETFs for a moment, as of May 17, Vanguard had $983.21 billion in U.S. ETF assets under management, making it the second-largest domestic ETF sponsor and putting it within spitting distance of joining BlackRock, Inc. (NYSE:BLK) in the $1 trillion club.At current ETF asset levels, Vanguard is more than 50% larger than the third-largest U.S. issuer. Year-to-date, four of the top 10 ETFs in terms of new assets added are Vanguard funds. Making Vanguard funds all the more alluring to advisors and investors is the firm's commitment to low costs. In fact, the Pennsylvania-based fund giant recently trimmed the fees on 21 of its ETFs, including some highly popular fare.Vanguard funds are spread across multiple asset classes, including domestic and international equities, various fixed income segments, real estate and some factor-based strategies. So when it comes to Vanguard funds, there is usually something for nearly every type of investor.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Marijuana Stocks to Play the CBD Trend Here are some of the best Vanguard funds for investors to consider right now. Vanguard Total International Bond ETF (BNDX)Expense ratio: 0.09% per year, or $9 on a $10,000 investment.As is the case with stocks, investors tend to have a home country bias when it comes to bonds. That bias can prevent investors from realizing compelling ex-US opportunities with Vanguard funds, such as the Vanguard Total International Bond ETF (NASDAQ:BNDX).Among Vanguard funds, BNDX does not grab many headlines, but this year, investors are waking up to this ETF's story. Year-to-date, BNDX has added $3.61 billion in new assets, a total surpassed by just nine other ETFs. More importantly, this Vanguard fund is proving to be a star among bond ETFs in 2019. BNDX is beating the widely followed, domestically-focused Bloomberg Barclays U.S. Aggregate Index by almost 100 basis points this year.BNDX tracks the Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index and holds nearly 5,800 bonds with an average duration of 7.8 years. All of this Vanguard fund's holdings have ratings ranging from Baa to Aaa, meaning credit risk is minimal. Vanguard ESG International Stock ETF (VSGX)Expense ratio: 0.15%Last year, Vanguard made its foray into the world of environmental, social and governance (ESG) ETFs with two products, including the Vanguard ESG International Stock ETF (CBOE:VSGX). This Vanguard fund takes a traditional approach to virtuous investing.VSGX "specifically excludes stocks of companies in the following industries: adult entertainment, alcohol and tobacco, weapons, fossil fuels, gambling, and nuclear power," according to Vangaurd.While there are larger ESG ETFs, this Vanguard fund is proving the "Vanguard effect" is meaningful in the ESG space. VSGX debuted last September and already has $266.2 million in assets under management, making it one of the larger international funds in this category. * 10 Small-Cap Stocks That Look Like Bargains VSGX holds a mix of developed and emerging market equities with the latter representing 19.40% of the fund's weight. Developed European markets account for nearly 42% of this Vanguard fund's geographic exposure. Vanguard Dividend Appreciation ETF (VIG)Expense ratio: 0.08%The Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) is the largest U.S. dividend ETF and has attained that lofty status for multiple reasons, including an index methodology that includes only stocks with at least 10 consecutive years of dividend increases and a reputation for being one of the cheaper dividend funds on the market."This strategy focuses on dividend growth rather than dividend yield," said Morningstar in a recent note. "This approach reduces the fund's exposure to firms with weak fundamentals that may not be able to sustain their dividend payments, which is a risk that often accompanies a narrow focus on yield. The fund builds its portfolio by selecting only among stocks that have increased their dividend payment for at least 10 consecutive years. This stringent hurdle restricts the fund to holding highly profitable firms with shareholder-friendly management teams that have consistently raised dividend payments."VIG holds 183 stocks, nearly 48% of which are industrial or consumer staples stocks. With domestic dividends growing this year, but a moderated pace compared to recent years, VIG is an ideal Vanguard fund for investors looking for quality dividend growth. Vanguard Emerging Markets Government Bond ETF (VWOB)Expense ratio: 0.30%Emerging markets debt is an ideal asset class for income-hungry investors looking for exposure to developing economies with lower risk than equities. The Vanguard Emerging Markets Government Bond ETF (NASDAQ:VWOB) has a 30-day SEC yield of 4.47%, more than double the dividend yield on the MSCI Emerging Markets Index, and this Vanguard fund is outperforming the major emerging markets ETFs this year.VWOB holds 834 bonds with an average duration of 7.2 years. There is some credit risk with this Vanguard fund as over 30% of VWOB's reside toward the lower end of the investment-grade spectrum and nearly 48% carry non-investment grade ratings. Some of that risk is tempered by an almost 17% weight to China, a country that is unlikely to see its credit rating downgraded anytime soon. * 10 Baby Boomer Stocks to Buy This Vanguard fund could prove durable over the medium-term as the Federal Reserve holds off on raising interest rates and emerging markets currencies firm. Several of VWOB's largest country weights, excluding Mexico, are candidates to lower interest rates, which adds to the case for this Vanguard fund. Vanguard Mid-Cap ETF (VO)Expense ratio: 0.04%With its annual fee of just 0.04%, the Vanguard Mid-Cap ETF (NYSEARCA:VO) is one of the cheapest mid-cap ETFs on the market. Mid-cap stocks are usually defined as those names with market values of $2 billion to $10 billion, though some money managers stretch that to $15 billion. Historical data confirm the efficacy of owning mid-cap stocks."Since the Russell Midcap index started in 1979, midcaps have outperformed small-cap stocks on every rolling 10-year period, and they beat small- and midcap stocks combined 90% of the time. Midcap stocks outperform large stocks 73% of the time," according to Pensions & Investments.VO holds 369 stocks with a median market value of $15.6 billion, putting the Vanguard fund at the higher end of mid-cap territory. About 57% of the fund's weight is allocated to just three sectors - financial services, industrials and technology.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post 5 of the Best Vanguard Funds to Buy appeared first on InvestorPlace.
In the world of exchange-traded funds (ETFs), equity funds are the dominant group, but advisors and investors are increasingly willing to fill out the fixed income portions of their portfolios with bond ETFs. Last year, nearly bond ETFs set an inflows record, capturing nearly a third of all U.S. ETF inflows.Bond ETFs are on a torrid asset-gathering pace again in 2019. Year-to-date, five of the top 10 ETFs in terms of new assets added are bond ETFs and investors' pensiveness on the rise, bond ETFs could continue packing on new assets over the coming months.Adding to the case for bond ETFs, particularly those with long durations, is that the Federal Reserve appears likely to hold off on raising interest rates this year. Some bond market observers are even speculating that an interest rate cut could occur later this year. While it may be prudent to expect an interest rate cut, even if the Fed simply stands pat on rates, that could benefit a slew of bond ETFs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dividend Stocks to Buy as the Trade War Reignites For investors looking for safety plays or to boost their income streams, here are some bond ETFs to consider. Bond ETFs: WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund (SHAG)Expense Ratio: 0.12% per year, or $12 on a $10,000 investment.The WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund (CBOE:SHAG) is a bond ETF for investors to consider if, for some reason, the Fed surprisingly reverses course and decides to raise rates again because SHAG has an effective duration of just 2.65 years. Lower duration bond ETFs are less sensitive to changes in interest rates, explaining why so many of these bond ETFs were popular in 2018 when the Fed boosted borrowing costs four times.SHAG's 30-day SEC yield of 2.73% is decent when considering investors are not incurring much risk with this bond ETF. That yield is boosted by a 55.37% weight to corporate bonds, while the rest of SHAG's holdings are U.S. government and agency debt. That means credit risk is mostly low with this fund, as highlighted by more than 40% of SHAG's holdings carrying AAA ratings. None of SHAG's holdings carry junk ratings.While it appears unlikely interest rates will rise, SHAG still merits consideration over the near-term due to its conservative posture and steady income stream. SPDR ICE BofAML Broad High Yield Bond ETF (CJNK)Expense Ratio: 0.15%Cheap ETFs are available in all shapes and sizes and that includes junk bond funds. In fact, the SPDR ICE BofAML Broad High Yield Bond ETF (NYSEARCA:CJNK) was recently converted into one of the least expensive junk bond ETFs on the market after being a different kind of corporate bond fund. While many investors think of junk bonds as risky, this asset class is suitable for myriad portfolios and investment objectives."High yield is an asset class that should be at the center of any income-generating portfolio, just by virtue of it carrying a yield 63% higher than that of the combined yield of global aggregate bonds and global equities, on average, over the past 20 years," according to State Street research. * 7 Cloud Stocks to Buy on Overcast Days CJNK has an option-adjusted duration of 3.61 years and holds over 1,000 junk bonds. This low-cost bond ETF has a 30-day SEC yield of 6%. VanEck Vectors Green Bond ETF (GRNB)Expense Ratio: 0.3%For investors looking to implement socially responsible investing principles in the fixed income portions of their portfolios, the VanEck Vectors Green Bond ETF (NYSEARCA:GRNB) is a bond fund to consider. A simple definition of green bonds is that these bonds are issued to finance environmentally friendly projects.GRNB's underlying index "is comprised of labeled green bonds that are issued to finance environmentally friendly projects, and includes bonds issued by supranational, government, and corporate issuers globally in multiple currencies," according to VanEck.Many issuers of green bonds are large, developed market governments, meaning GRNB's credit risk is low. About two-thirds of the fund's 188 holdings are rated AAA, AA or A. GRNB has a duration of 6.45 years. The green bond market is expected to grow exponentially in the years ahead."The first quarter of 2019 saw a welcome boost in green bond supply, totaling over $40 billion, which is up approximately 46% versus the same period one year ago," said VanEck in a recent note. "North American issuance was up approximately 30%, with green bonds from first time corporate issuers including Verizon and Citigroup as well as repeat issuance from companies such as Duke Energy and MidAmerican Energy." Schwab Short-Term U.S. Treasury ETF (SCHO)Source: Shutterstock Expense Ratio: 0.06%The Schwab Short-Term U.S. Treasury ETF (NYSEARCA:SCHO) is a bond ETF for conservative, cost-conscious investors. As its name implies, SCHO holds Treasuries, so there is essentially no credit risk with this fund."Indexing Treasuries in this way is a sound approach for exposure to a specific portion of the yield curve," said Morningstar in a recent note on SCHO. "It is difficult for active managers to recoup their fees while offering comparable exposure to Treasuries on this narrow segment of the yield curve, as Treasuries are one of the most competitively priced areas of the bond market and managers have little leeway to take additional duration risk." * 7 Dangerous Dividend Stocks to Stay Far Away From SCHO's effective duration is just 1.93 years. In other words, SCHO's selling points are low credit risk, low rate risk and a low fee. The first two of those points also mean a somewhat low yield (2.32%), but that is the trade-off for reducing credit and interest rate risk. Vanguard Total International Bond ETF (BNDX)Source: Shutterstock Expense Ratio: 0.09%The Vanguard Total International Bond ETF (NASDAQ:BNDX) has several factors that make it a compelling choice among bond ETFs. As is the case with so many Vanguard funds, BNDX qualifies as a cheap ETF. In fact, investors would be hard-pressed to find a cheaper international bond ETF.Second, BNDX provides investors with some international diversification, a trait that often goes overlooked in bond portfolios. Third, BNDX uses a currency hedge to provide a buffer against weakness in currencies that the fund's holdings are denominated. Home to more than 5,600 bonds, BNDX is also one of the largest bond ETFs in terms of roster size.BNDX has slight emerging markets exposure and the bulk of its geographic exposure is allocated among developed Europe and the Asia-Pacific region. Japan, France and Germany combine for 43.2% of this Vanguard fund's weight. BNDX has an average duration of 7.9 years and is one of this year's most popular bond ETFs as highlighted by inflows of $3.43 billion, good for the ninth-best tally among U.S.-listed ETFs. Vanguard Intermediate-Term Corporate Bond ETF (VCIT)Source: Shutterstock Expense Ratio: 0.07%The Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT) is one of the dominant names among intermediate-term corporate bond ETFs. One of the lowest fees in the category is a help, as is the fund's investment-grade portfolio.VCIT holds 1,770 bonds with an average duration of 5.8 years. Over 94% of the fund's holdings are rated A or Baa. VCIT has a 30-day yield of 3.6%, which is above what investors find with Treasury funds of comparable durations. This Vanguard fund is outperforming the largest corporate bond ETF by about 40 basis points over the past 12 months. * 10 Great Stocks to Buy on Dips Advisors and investors are certainly taking notice. As of May 9, VCIT's year-to-date inflows were $4.39 billion, good for the top spot among bond ETFs and the fourth spot overall among U.S.-listed ETFs. Invesco Corporate Income Value ETF (IHYV)Source: Shutterstock Expense Ratio: 0.23%At just under a year old, the Invesco Corporate Income Value ETF (NYSEARCA:IHYV) is a hidden gem among corporate bond ETFs, presenting investors with a value play on corporate bonds with non-investment-grade ratings. This bond ETF tracks the Invesco High Yield Value Index.That benchmark is "designed to provide exposure to higher value, U.S. high yield bonds and bonds with the lowest credit rating considered investment grade," according to Invesco. "Higher value bonds are characterized as those with higher yields that may provide greater returns in certain markets. In addition, the Index seeks to incorporate securities with the highest quality scores within the eligible universe of U.S. bonds."IHYV features scant exposure to highly speculative CCC-rated debt (3% of the portfolio), but the fund is somewhat levered to oil prices because energy issues represent over 22% of IHYV's weight. Investors are compensated for the risk that comes along with this bond ETF with a 30-day SEC yield of 6.50%. IHYV has an effective duration of 4.04 years.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy as the Trade War Reignites * 10 Stocks That Could Squeeze Short Sellers, Including CGC * 5 Tech Stocks Getting Crushed Compare Brokers The post 7 Bond ETFs to Buy appeared first on InvestorPlace.
Despite the momentum in the riskier equity market, exchange traded fund investors continued to favor conservative bets and yield-generating plays. Among the most popular ETF plays of the past week, six ...
Fixed-income investors have been loath to pick up international debt exposure as foreign exchange currency swings can negate the upside potential and increase portfolio volatility. Mark McCarron, chief investment officer for Wescott Financial Advisory Group, warned of global diversification when it comes to bonds due to currency risk, CNBC reports. "Our fixed income exposure is almost exclusively in U.S. dollars," McCarron, told CNBC.
Italy's budgetary plans for the 2019 fiscal year have unnerved financial markets. The Lega/Five Star Movement governing coalition, which came into power with the promise of a comprehensive program of extra public expenditure, has approved a substantial upward revision to the 2019 budget deficit target to 2.4% of gross domestic product: 3 times higher than the 0.8% figure agreed by the previous administration with the European Commission. The spread between German and Italian bonds has widened but, crucially, so has that between Spain and Italy (see Exhibit 1).
Last week, the second-largest U.S. issuer of exchange traded funds added to its lineup of fixed income ETFs with the debut of the Vanguard Total World Bond ETF (NASDAQ: BNDW). BNDW's holdings are the aforementioned BND and the Vanguard Total International Bond ETF (NASDAQ: BNDX). “This structure enables the Vanguard Total World Bond ETF to achieve immediate scale by using existing exposure from the underlying ETFs and is expected to result in tighter bid-ask spreads and lower operating expenses than investing directly in the benchmark’s constituents,” Pennsylvania-based Vanguard said in a statement.
Vanguard has rounded out its global fixed-income ETF suite with a new low-cost world bond ETF of ETFs that combines the global investment-grade universe. On Thursday, Vanguard launched the Vanguard Total World Bond ETF (NasdaqGM:BNDW) , which has a 0.09% expense ratio. The Vanguard Total World Bond ETF tries to reflect the performance of the Bloomberg Barclays Global Aggregate Float Adjusted Composite Index, which is comprised of investment-grade U.S. bonds and investment-grade non-U.S. dollar-denominated bonds taken from the Bloomberg Barclays U.S. Aggregate Float Adjusted Index and the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged), according to the fund's prospectus.