|Bid||78.41 x 800|
|Ask||79.05 x 800|
|Day's Range||78.38 - 78.45|
|52 Week Range||77.84 - 80.41|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.07%|
In the current interest rate environment, fixed-income investors can adjust their strategies to mitigate interest rate risk, especially if the economic activity slows and worse, monetary policy might even ...
A raging bull market combined with the latest data from the Department of Commerce showing that gross domestic product rose 4.1% in the second quarter gives the Federal Reserve ample reason for rate hikes. ...
The benchmark 10-year and 30-year Treasury yields fell Friday, slipping to 2.956 and 3.098 respectively as the U.S. Department of Labor reported today that total nonfarm payrolls increased by 157,000 for ...
The Federal Open Market Committee is in the midst of a two-day meeting to discuss the current economic landscape and upcoming moves on monetary policy, which will include a policy decision announcement set to take place today with bond markets already reacting ahead of the decision. The latest data from the Department of Commerce reveals gross domestic product rising by 4.1% in June, which could be a key motivator for the Fed with respect to determining monetary policy. Yesterday, Vanguard Interm-Term Corp Bd ETF (JNK) received an influx of 35.82 million and SPDR Blmbg BarclaysST HY Bd ETF (SJNK) saw an uptick in buy volumes with $39.03 million worth of trading volume experienced. “We expect only minor changes to the policy statement to reflect the latest developments in the economy,” economists at Bank of America Merrill Lynch wrote in a research note.
The Federal Open Market Committee is in the midst of a two-day meeting to discuss their next moves on monetary policy, which will include a policy decision announcement set to take place on Wednesday. ...
With the economy growing at a rampant pace, the capital markets are predisposed to the idea that the Federal Reserve will continue to raise rates, but the latest real estate data published by the Commerce ...
In the current rising rate environment, a number of financial advisors are suggesting investors to treat fixed income like the sun and limit prolonged exposure. In this case, as the Federal Reserve's predilection for raising interest rates does not appear to be changing anytime soon, it's best to take advantage of these short-term rate adjustments by limiting duration. In the current economic landscape, Collin Martin, director of fixed income for Charles Schwab's Schwab Center for Financial Research, is advising bond investors to avoid fixed-income investments with long-term yields in the interim.
U.S. government debt yields got a boost today, piggybacking on increases in Japanese bond yields as reports surfaced last week suggesting that Japan may tighten their monetary policy. Japanese 10-year yields climbed four basis points--its highest level since February and the U.S. 10-year responded with its own 7-basis point jump to its current 2.96 percent yield as of 2:15 p.m. ET. The Bank of Japan is currently holding preliminary discussions to adjust its interest-rate targeting and stock-buying techniques--a move communicated by the BOJ as one that does not suggest a tightening of monetary policy, but one that the markets are interpreting as such. "Although [the Bank of Japan] tried to really make clear this wasn’t a tightening policy, the market looked at it as another step away from easy money," said Kathy Jones, chief fixed income strategist for the Schwab Center for Financial Research.
"If you had to choose between buying long-term bonds or equities, I would choose equities in a minute," Buffett told CNBC's "Squawk Box" in an interview earlier this year. Buffett continued to lambaste bonds, telling Berkshire Hathaway shareholders in an annual letter that debt issues were not a lower-risk investment over the long term compared to stocks. "I want to quickly acknowledge that in any upcoming day, week or even year, stocks will be riskier — far riskier — than short-term U.S. bonds," Buffett wrote.
According to an article on Forbes, Canadian businessman and “Shark Tank” reality television show personality Kevin O’Leary based his investing principles on lessons espoused by his mother who built a successful ...
Treasury yields changed little following Federal Reserve Chairman Jerome Powell’s semiannual monetary policy report today to the Senate Committee on Banking, Housing, and Urban Affairs, citing that the ...
Investors looking for the income benefits of investment-grade corporate bonds while limiting duration risk have plenty of options to consider in the world of ETFs. One of the most cost-effective options is the Vanguard Short-Term Corporate Bond ETF (VCSH) . In a rising rate environment, the price of older bonds with lower rates will fall since these older debt securities appear less attractive and traders would demand a discount on the older lower-yielding debt.
Vanguard, the second-largest U.S. issuer of exchange traded funds, said it has filed plans with the Securities and Exchange Commission to introduce the Vanguard Total World Bond ETF. Vanguard previously used the ETF of ETFs on one of its other bond ETFs. The Vanguard Total Corporate Bond ETF (VTC) debuted last year and holds the Vanguard Short-Term Corporate Bond ETF (VCSH) , Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard Long-Term Corporate Bond ETF (VCLT) .
Rising interest rates can hurt investors' fixed-income portfolios. In this article, I will examine the case of PowerShares Senior Loan Portfolio BKLN , which has been a popular choice for investors looking to lessen the risk of rising rates. It is also perhaps the poster child for the futility of investors' efforts to stay a step ahead of the Fed. I will also explore other options from the menu of fixed-income exchange-traded funds, and beyond, that might help investors better manage interest-rate risk in their portfolios.
Investors looking for cost-effective exposure to a broad swath of investment-grade corporate bonds with varying durations may want to consider the Vanguard Total Corporate Bond ETF (VTC) . The Total Corporate Bond ETF acts like a fund-of-funds and will try to reflect the performance of the Bloomberg Barclays U.S. Corporate Bond Index, which includes investment-grade, fixed-rate, taxable corporate bonds issued by industrial, utility and financial issuers. The fund-of-funds holds three other Vanguard ETFs that track three different maturity ranges, including the Vanguard Short-Term Corporate Bond ETF (VCSH) , Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard Long-Term Corporate Bond ETF (VCLT) .
For many years, our fund flows showed that fixed income was one area where many investors preferred active management. Owing to the Fed's historic zero interest-rate policy that stretched from December 2008 to December 2016, bond yields were meager. Investors looking for yield were rewarded for taking on credit risk.
If we turn back the clock to before the recession, we find that US debt levels weren’t this high, and unconventional programs like quantitative easing helped the economy recover from the Great Recession. The US Treasury must deal with higher interest rates and borrow more to keep the economy running, and this cycle could turn into a downward spiral unless revenues increase. The US Treasury is the king of the credit markets, and it’s followed by investment-grade (LQD)(VCSH) bonds and junk (JNK) bonds.
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2017 was another record year for assets flowing into exchange-traded funds (ETFs), and Vanguard was a big reason why. When it came to lost assets, not one Vanguard ETF was among last year’s worst offenders. By some estimates, Vanguard could be managing $10 trillion in total assets by 2023.
Bond funds took in about $201.9 billion in net new money in the first nine months of this year. That's 64% more than in the same period for 2016.