|Bid||76.32 x 1400|
|Ask||76.60 x 1400|
|Day's Range||75.55 - 76.72|
|52 Week Range||55.58 - 99.72|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-20.13%|
|Beta (5Y Monthly)||0.80|
|Expense Ratio (net)||0.12%|
Inflation is a natural occurrence in the market economy and a disciplined investor can begin planning for inflation by cultivating ideas for asset classes that do well during inflationary climates. In fact, many people have looked to gold as an "alternative currency," particularly countries whose currency is losing value.
Vanguard is best known as one of the foremost pioneers of low-cost investing, including in the exchange-traded fund (ETF) space. It's hardly alone in low costs anymore, of course. Providers such as Schwab, iShares and SPDR have all hacked away at each other with ever-shrinking fees.Don't sleep on Vanguard ETFs, however. The provider isn't always No. 1 among the cheapest index funds like it used to be, but it remains a low-cost leader across several classes. No matter where you look, it's usually among the least expensive funds you can buy.And expenses matter. Let's say you put $100,000 into Fund A and another $100,000 into Fund B. Both funds gain 8% annually, but Fund A charges 1% in fees while Fund B charges 0.5%. In 30 years, that investment in Fund A will be worth a respectable $744,335. But Fund B? It'll be worth $865,775. That's about $120,000 lost to fees and missed opportunity cost as those expenses suck away returns that could compound over time.Here, then, are eight of the best low-cost Vanguard ETFs that investors can use as part of a core portfolio. All of these index funds are among the least expensive in their class and offer wide exposure to their respective market areas. SEE ALSO: The 20 Best ETFs to Buy for a Prosperous 2020
Low mortgage rates can help spur more real estate buying activity among prospective homeowners, especially in hot housing markets that are primed for a boom. This could also be a boon for real estate-focused ...
As an increasing number of Americans look to renting as a more affordable option to owning a new home, exchange traded funds that focus on residential real estate investment trusts could continue to capitalize on the trend. "A new Freddie Mac survey shows that affordability remains top of mind for those individuals looking to rent or purchase a home," according to a Freddie Mac note. Specifically, Freddie Mac's recent survey, “Profile of Today’s Renter and Owner”, has found that an unprecedented 84% of renters believe renting is more affordable than owning, an all-time high for the survey, or up 17 percentage points from February 2018.
The capitalization rate, desirability of location and now, environmentally-sound factors, could be guiding real estate investment decisions in the future. If you’re talking to an audience that’s mainly from the U.S. or Asia, the financial indicators are a little more influential in the way those conversations are actually happening.
In the lower-for-longer yield environment, fixed-income investors may turn to real estate investment trusts and sector-related ETFs to meet their needs. According to EPFR Global data, real-estate mutual ...
It didn’t seem like long ago when the internet changed the typical real estate transaction, allowing prospective buyers and sellers to perform their own research as opposed to relying on an agent to solely guide their real estate decisions. Now, disruption is on another level with the advent of technology like robotics and artificial intelligence, which is forcing agents to adapt to the ever-changing real estate landscape. It’s a sentiment that’s being echoed irrespective of the industry—from manufacturing and of course, now, real estate.
The real estate sector and the related ETFs are usually viewed as heavily domestic investments, but the real estate sector is massive outside the U.S. and investors can access that opportunity set with ...
My specialties involve economic and market data and developments and in turn the best individual securities from the stock, bond and other markets to capitalize on those developments for safer growth and income. This is what I showcase in my Profitable Investing -- now in its thirtieth year of publication.However, I understand the needs and wants for funds including exchange-traded funds (ETFs) by individual investors. It may be that portfolios are in smaller sums or are part of administered qualified retirement accounts including IRAs, 401k's, 403b's and SEP's. And many of these accounts are domiciled in the major fund companies. The Vanguard Group is one of the largest fund management companies, with over $5 trillion in assets under management (AUM). And in the U.S. market it is one of the leaders in providing individual investors a wide array of funds, including ETFs.Inside the model portfolios of Profitable Investing I have a collection of model mutual fund portfolios, including three which are specific to funds of individual fund families including Fidelity, T. Rowe Price and Vanguard. I do this to specifically guide subscribers who want or need to stay domiciled in fund families.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd in all of the mutual fund portfolios, I provide an allocation to specific funds which seeks to match up to the main portfolio of individual securities in allocations and strategies. * 7 Great High-Yield Stocks With Payouts Over 5% Let me now show you how I line up the funds of Vanguard for a better portfolio. Stocks, Fixed Income & CashTo start, I have a current allocation of 56% in stocks, 44% in fixed income and included in that 44% is 11% in cash. I know that this allocation is less than many 60/40 stocks to bonds than is typical of asset allocations for many managers. But I have been a bit more conservative of late given many of the challenges to the financial markets, as well as the opportunities in the bond markets for not just income, but growth as well.I'll start with the stock allocations. My continued judgement is that the U.S. remains the prime market of the globe. Europe and Asia continue to have slower growth including some borderline recessionary conditions. And Latin America and Africa have a bevy of highly challenging problems.So, my allocations are highly focused on the U.S. markets right now. This is different from my decades of being focused more on global markets, as I was in banking and asset management. General US StocksVYM and S&P 500 Index Total Return Source BloombergThat said, the starting point for Vanguard is the Vanguard High Dividend Yield ETF (NYSEARCA:VYM). This is an indexed ETF which is focused on U.S.-listed stocks which pay higher average dividends, nearly all in the U.S. market. This is my more measured approach to the S&P 500 Index, as the higher weightings on dividends provides a lesser risk to downturns as well as volatility. * 7 Large-Cap Stocks to Give a Wide Berth You'll note that over the past 10 years, the Vanguard ETF has generally provided more consistent total return including dividend income. And in 2018 during the severe downturn in the S&P 500 Index, the Vanguard ETF held up much better. But for 2019, with a drive towards more aggressive stocks (particularly in the technology sector), it has lagged. But my view is that I want to achieve a lower volatility and lower risk return over time. Real EstateVNQ and S&P 500 Index Total Return Source BloombergNext in the stock allocation is real estate investment trusts (REITs). This is done with the Vanguard Real Estate ETF (NYSEARCA:VNQ). REITs continue to benefit from a growing U.S. economy fueling property demand and better rental income. And with low inflation, funding costs are reduced for overall improving profitability.REITs continue to provide more lower-risk growth as they are mainly focused on U.S.-centric assets away from the global economic challenges. And as noted above, low inflation and strong-to-rising revenues feeds more valuable dividend income.For the trailing 12 months, the Vanguard REIT ETF has returned 16.56% outpacing the S&P 500 Index on a very consistent basis -- especially during some of the selloffs in late spring and later summer.And with a dividend yield of 3.25%, the ETF out pays the S&P 500 by a significant margin. With consistency based on real assets and defended dividend income, REITs in this ETF are a great way to achieve measured growth with higher income. UtilitiesVPU and S&P 500 Index Total Return Source BloombergThen I move to another defensive source for growth and income in the U.S. market with utilities. And this is done with the Vanguard Utilities ETF (NYSEARCA:VPU). Like for REITs, U.S. utilities are insulated from global woes. They continue to capitalize on the growing U.S. economy, including lower inflation.The best utilities are combinations of regulated local services and unregulated wholesale businesses. The combination of dependable revenues and profit margins plus added growth and income from unregulated operations makes for a great way to generate steady-to-rising income and dividends with growth over time. * 7 Stocks to Sell Before They Roll Over The return for VPU for the trailing year is a positive 14.42%, which had been consistently outperforming the S&P 500 Index. But into this month, there has been some market activity placing bets for more growth from more aggressive market sectors at the cost of more defensive sectors such as utilities. I see this as a mistake which may well place investors at a higher level of risk -- and perhaps peril. TechnologyVGT and S&P 500 Index Total Return Source BloombergNow I come to the exciting part of the U.S. market in information technology. Technology is a big growth engine for the U.S. economy, and tech stocks reflect optimism for higher returns. I accomplish this allocation with the Vanguard Information Technology ETF (NYSEARCA:VGT).Technology is the alchemy of the market. Whether products come from silicon or the ether in the minds of app and software developers, profits can be achieved in momentous amounts. But not all of them work, and there are always new products and services. This makes for volatile markets.So, while investors need exposure, it should be done as part of a broader portfolio.The technology market has been a good one, and VGT has turned in a return over just the past five years alone of over 138% -- outpacing the S&P 500 two-to-one. But note the fourth quarter of 2018, as this charged segment comes with drops along the way. Fixed Income: Corporate BondsVCIT and Bloomberg Barclays US Aggregate Index Total Return Source Bloomberg & BarclaysFixed income in the U.S. continues to be very good. The U.S. has very low inflation with little threat for some time to follow. This has led to lower yields and higher bond prices overall. But there are two sectors which I continue to advocate for investors in corporate bonds and municipal bonds.Corporate bonds continue to benefit from the growing economy. It's aiding credit conditions of businesses and bolstering their bond prices. And until recently, issuance has been slower -- aiding supply and demand for higher prices.My allocation to this market is in the Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT). This ETF has returned 16.25% over the trailing three years. That significantly outpaces the general U.S. bond market as tracked by the Bloomberg Barclays US Aggregate Index. Fixed Income: Municipal BondsVTEB and Bloomberg Barclays US Aggregate Index Total Return Source Bloomberg & BarclaysThen for municipal bonds, I have the Vanguard Tax-Exempt Bond ETF (NYSEARCA:VTEB). Municipal bonds have been gaining like corporates on the growing economy. Tax revenues are up, aiding credit of issuers. Low inflation also aids bonds. And issuance has been muted. Many issuers have not had the need or the political will to sell more bonds. Add in stronger demand by individual investors needing or wanting more tax-exempt income aided by limits on state and local income tax (SALT) deductions as part of the 2017 Tax Cuts & Jobs Act (TCJA), and munis are ever mightier.VTEB continues to outperform the U.S. Aggregate Bond Index done by Bloomberg Barclays over the past trailing three years, with a return of 13.18%. * 7 Great High-Yield Stocks With Payouts Over 5% And note, even if you invest in qualified investment accounts, I still recommend the tax-free ETF for total return and not just for tax-free income.Now, that I have outlined my allocations to ETFs from Vanguard for safer growth and income, perhaps you might take a look at Profitable Investing. And for more income ideas, take a look at my recently published book, Income for Life, which covers sixty-five income streams in nearly 400 pages that anyone can get. And I've written them all up in a simple and engaging way that are easy to understand and follow.For more information on my book, Income for Life, click here. It lays out income-producing investment strategies for all economic conditions, as well as additional income producing ideas that anyone can use successfully.Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps -- and into safe, top-performing income investments. Neil's new income program is a cash-generating machine…one that can help you collect $208 every day the market's open. Neil does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks to Buy for the Rest of 2019 * 7 Biotech Stocks to Buy With Plenty of Power in the Pipeline * 5 Stocks to Buy That Are Set for Monster Growth in 2020 The post 6 Vanguard ETFs to Build a Better Portfolio appeared first on InvestorPlace.
With investors piling into bonds, safe haven Treasury notes have been offering yields that are scraping the bottom of the barrel, but the recent uptick in stocks is causing yields to rise once again. Will this hurt real estate ETFs in the long run?
The stock market is humming along with the Dow Jones Industrial Average and the S&P 500 reaching new highs, but in the rearview mirror is still a real estate market that has been weighed down by high prices despite lower rates. With the possibility of an extended bull run that’s on its last legs, real estate could be on the sectors in the forefront during a recessionary period—it’s a notion that’s hard to believe given that the financial crisis in 2008 saw the sector suffer. “2008 and 2009 were very rough years for REITs,” wrote Jussi Askola on Seeking Alpha.
As more Americans rely on renting a home, real estate investment trusts and sector-related exchange traded fund that focus on residential areas could continue to offer investors attractive returns. A growing ...