|Bid||53.61 x 1100|
|Ask||53.89 x 3200|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||7.12%|
|Beta (3Y Monthly)||0.96|
|Expense Ratio (net)||0.08%|
One of the great things about Vanguard, aside from the low costs, is that when the issuer's index, mutual, and exchange traded fund (ETF) lineups are added, there are plenty of choices for wide varieties of investors, including those on the more risk-averse side of the ledger.Of course, costs, as in low costs, are one of the biggest reasons why Vanguard is a behemoth in the index fund universe and the second-largest U.S. ETF issuer. The company makes clear that it is on the investor's side when it comes to fees. The less investors lose to fees, the more they earn over long holding periods."Imagine you have $100,000 invested. If the account earned 6% a year for the next 25 years and had no costs or fees, you'd end up with about $430,000," said Vanguard. "If, on the other hand, you paid 2% a year in costs, after 25 years you'd only have about $260,000. That's right: The 2% you paid every year would wipe out almost 40% of your final account value. 2% doesn't sound so small anymore, does it?"InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks Under $5 to Buy for Fall For conservative investors, the good news is that there are plenty of Vanguard funds that meet their criteria. Those offerings generally come with below-average fees. With that in mind, here are some of the best Vanguard funds for conservative investors to nibble at. Vanguard Dividend Growth Fund (VDIGX)Source: Shutterstock Expense ratio: 0.22% per year, or $22 on a $10,000 investment.Conservative investors often embrace dividend strategies. The recently-reopened Vanguard Dividend Growth Fund (MUTF:VDIGX) is an excellent avenue with which to express that view. This Vanguard fund's costs are decent, but more importantly, it's a no-load mutual fund with a track record of nearly three decades and a manager that has been in place for 13 years.There a few reasons why VDIGX is a compelling bet among Vanguard funds. First, the yield on 10-year Treasuries recently slipped below the dividend yield on the S&P 500, indicating investors continue to lack adequate compensation with government debt. Second, the market is clearly favoring defensive strategies, including steady dividend payers.Finally, some market observers believe swaps markets are not pricing in the right level of S&P 500 dividend growth for 2020. That growth is likely to come in better than currently expected, which could be a nice jolt for this Vanguard, assuming broader markets perform well in 2020. Vanguard Tax-Exempt Bond ETF (VTEB)Source: Shutterstock Expense ratio: 0.08%For conservative investors, it doesn't get much better than municipal bonds and the Vanguard Tax-Exempt Bond ETF (NYSEARCA:VTEB). It's Vanguard's initial foray into the world of municipal bond ETFs. It has been a successful one at that as highlighted by VTEB's $5.8 billion in assets under management. This Vanguard fund, which tracks the S&P National AMT-Free Municipal Bond Index, holds 4,202 muni bonds, a massive number relative to competing strategies.Yield usually isn't the name of the game with investment-grade munis, but this Vanguard fund's 2.30% yield is better than what investors get on 10-year Treasuries, plus VTEB's credit risk is almost non-existent as 92% of its holdings are rated AAA, AA, or A. * 10 Cheap Dividend Stocks to Load Up On This Vanguard fund has an average duration of 5.4 years. That puts VTEB in intermediate-term territory, which is just fine as it's likely the Federal Reserve cuts interest rates again this year, perhaps up to two more times. Vanguard Total International Bond Index Fund ETF (BNDX)Source: Shutterstock Expense ratio: 0.09%For the conservative investor looking for to diversify away from U.S. government debt, the Vanguard Total International Bond Index Fund ETF (NASDAQ:BNDX) is a fund that makes a lot of sense, and not just because the ETF has been on a streak of hitting record highs this year.With low credit risk, this Vanguard fund lobs off a 30-day SEC yield of 2.87%. Plus, many of the ETF's marquee country weights already have or are likely to join the U.S. in lowering interest rates, thereby increasing the value of the underlying bonds in this portfolio."Japanese bonds account for nearly 20% of the fund's while European debt represents nearly 57%. Japan won't be raising interest rates anytime and the European Central Bank (ECB) is pushing for easier monetary policy," according to Nasdaq.Another reason to like this Vanguard: it has a currency hedge, meaning it's designed to benefit from strength in the U.S. dollar or weakness in the currencies its holdings are denominated in. Vanguard Global ex-US Real Estate ETF (VNQI)Source: Shutterstock Expense ratio: 0.12%All that talk about lower interest rates, declining Treasury yields and investors playing defense is lifting domestic real estate funds, but don't sleep on international equivalents. The Vanguard Global ex-US Real Estate ETF (NASDAQ:VNQI), which features exposure to more than 30 countries, is up 10.2% year-to-date and yields 3.41%.VNQI "focuses on closely tracking the index's return, which is considered a gauge of overall non-U.S. real estate investment trusts' and operating companies' returns and offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds," according to Vanguard. * 15 Growth Stocks to Buy for the Long Haul Home to 615 real estate stocks, this Vanguard fund can be considered an idea for conservative risk-takers due to its 20.40% exposure to emerging markets and its status as a mid-cap fund. Investors eyeing this Vanguard fund may want to wait because it allocates more than 12% of its weight to Hong Kong, a market battered in recent weeks due to geopolitical headwinds. The protests in Hong Kong are aimed at China, more than 10% of VNQI's weight, so wait a bit on a this Vanguard fund. Vanguard Total Corporate Bond ETF (VTC)Source: Shutterstock Expense ratio: 0.07%Among corporate bond ETFs, it's hard to find a larger lineup than the nearly 6,000 bonds featured in the Vanguard Total Corporate Bond ETF (NASDAQ:VTC). VTC arrives at that massive lineup by holding the three other Vanguard corporate bond ETFs. The Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) is VTC's largest holding at a weight of 36.20%While VTC's largest allocation is to a short-term Vanguard fund, its exposure to intermediate- and longer-dated corporate bonds is enough to prop its yield up to a decent 3.36%. And that's with nearly half its holdings rated AAA, AA or A.VTC has an average duration of 7.3 years, which is below the 9.08 years on the Markit iBoxx USD Liquid Investment Grade Index. With interest rates falling and VTC's lower duration relative to that rival index, the Vanguard fund is trailing that benchmark this year, but if VTC rebalances away from short-term corporates, its leverage to declining interest rates would increase. Vanguard Mid-Cap Value Index Fund Admiral Shares (VMVAX)Source: Shutterstock Expense ratio: 0.07%The Vanguard Mid-Cap Value Index Fund Admiral Shares (MUTF:VMVAX) carries a $3,000 minimum investment, but this Vanguard is worth the cost of admission for conservative investors willing to bet on a value rebound while getting some mid-cap exposure."Value stocks are those that may be temporarily undervalued by investors," according to Vanguard. "These companies typically grow at a slower pace than the broader group of mid-sized companies. One of the fund's key risks is that mid-capitalization stocks tend to be more volatile than large-company stocks." * 10 Best Stocks to Buy and Hold Forever This Vanguard fund holds 206 stocks, nearly a quarter of which hail from the financial services sector. Consumer staples and discretionary names combine for over 26% of VMVAX's roster. Vanguard High Dividend Yield ETF (VYM)Source: Shutterstock Expense ratio: 0.06%One of the largest and least expensive dividend ETFs, the Vanguard High Dividend Yield ETF (NYSEARCA:VYM) is a solid bet for yield seekers and dividend growth investors. That's the case because while VYM yields almost 3.05%, that yield isn't so high as to imply reason for concern. Additionally, VYM does not feature excessive allocations to high-yield sectors like real estate and utilities. That's good news because there are risks associated with high-yield stocks."Focusing on high-yielding stocks can be dangerous because these names may be under financial distress and at risk of cutting their dividend payments," according to Morningstar. "Many pay out a large share of their earnings and have a narrow buffer to cushion these payments if their business deteriorates compared with lower-yielding counterparts."VYM holds nearly 420 stocks, many of which have a value tilt. The near-term risk with this Vanguard fund is its almost 19% weight to the financial services sector, which is being pressured by falling interest rates.Todd Shriber doesn't own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 7 Vanguard Funds for Conservative Investors appeared first on InvestorPlace.
If investors haven't already been allocating a portion of their fixed income portfolio to municipal bonds, now is the time to get that necessary exposure via exchange-traded funds (ETFs). "Municipal bonds are also quite popular with individual U.S. investors, as the interest income from the most municipal bonds is not subject to federal income tax," the investment case noted.
Fixed income has seen a number of record flows this year into exchange-traded funds (ETFs) as investors look to gain core bond exposure as a more dovish central bank looks to cute interest rates this year. One area where investors may want to consider for additional fixed income exposure is the municipal bond market, which could see additional strength in the second half of 2019. "Looking at municipal supply thus far in 2019, issuance has been on target relative to expectations," wrote New York Life Investments’ MacKay Municipal Managers.
Municipal bonds and related ETFs have been riding on high momentum, strengthening on a broad surge in demand for attractively yielding debt and dip in borrowing by state and local governments. Over the ...
Given its asset-gathering acumen and penchant for delivering some of the lowest cost exchange traded funds, it was just a matter of time before Vanguard entered the $1 trillion ETF club. The Pennsylvania-based ...
The municipal bond space represents a specific corner of the bond market that has its own nuances to be wary of, such as costs and tracking errors. During the month of May, investors were willing to take on the risk as more funds were piled into even riskier high yield munis. Furthermore, municipal bond funds took in $37 billion, which was the most in almost 30 years.
Last year was another banner year for Vanguard, the second-largest U.S. issuer of exchange-traded funds (ETFs). As of Dec. 27, Vanguard ETFs listed in the U.S. had $841.70 billion in assets under management, trailing only BlackRock's iShares brand.When 2018 ended four Vanguard ETFs ranked among the year's top ten ETFs in terms of new assets added. Only iShares had more funds on that list, with five. One of the reasons Vanguard ETFs are so popular with advisors and investors is the issuer's reputation for having some of the lowest fees in the fund industry.While there are some examples of ETFs with lower expense ratios than competing Vanguard ETFs, Vanguard has a well-deserved reputation for being one of the low-cost leaders in the index fund and ETF industry.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dark Horse Stocks Winning the Race in 2019 Here are some of the best Vanguard ETFs to consider in 2019: Vanguard FTSE Europe ETF (VGK)Expense ratio: 0.09% per year, or $9 on a $10, 000 investment.European stocks suffered through a dismal 2018, as highlighted by the Vanguard FTSE Europe ETF (NYSEARCA:VGK) losing almost 18% for the year. VGK finished 2018 residing nearly 13% below its 200-day moving average, a technical indicator the fund has not closed above since the second quarter.VGK follows the FTSE Developed Europe All Cap Index and its geographic selection universe includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom, according to Vanguard.In order for this Vanguard ETF to shine in 2019, European geopolitical volatility needs to ease and catalysts beyond valuation and "it cannot get much worse for European stocks" need to emerge. Vanguard Value ETF (VTV)Expense ratio: 0.04% per yearLast year was another challenging one for value stocks, but the fourth-quarter slide in growth and momentum has some market observers speculating that investors will favor more defensive value fare in 2019. The Vanguard Value ETF (NYSEARCA:VTV), one of the cheapest value funds on the market, lost nearly 8% last year and trailed the S&P 500.Like many value funds, this Vanguard ETF was hamstrung in 2018 by a large combined weight to the financial services and energy sectors. Those sectors, two of the worst-performing groups in the S&P 500 last year, combine for nearly 33% of VTV's weight. * 7 Dark Horse Stocks Winning the Race in 2019 As is the case with European stocks, much of the case for value stocks in 2019 revolves around investors saying enough is enough with the declines and earnestly rotating away from growth into value. Investors added $2.54 billion to VTV in the fourth quarter, indicating some are willing to bet on a value rebound in 2019. Vanguard High Dividend ETF (VYM)Expense ratio: 0.06% per yearThe combination of rising interest rates and weakness in the broader market hampered high dividend strategies, such as the Vanguard High Dividend ETF (NYSEARCA:VYM), in 2018. This Vanguard ETF finished 2018 with a loss of nearly 9%. If investors flock to defensive sectors in 2019, something that started happening late last year, VYM could be one of the best Vanguard ETFs in the new year."A Reuters analysis of 2019 outlooks from 10 major financial institutions found eight, including Morgan Stanley, Goldman Sachs and Barclays, with 'overweight' ratings on at least one defensive sector for 2019," reports Reuters. "That marks a big change from last year, when just two of those banks favored any defensive sectors."VYM, which yields 3%, allocates about 34% of its combined weight to the defensive consumer staples, healthcare and utilities sectors. Vanguard FTSE Emerging Markets ETF (VWO)Expense ratio: 0.12% per yearSomething investors heard plenty of in 2018: Emerging markets stocks got punished. From China to Chile and many, many more, emerging markets stocks were a dismal asset class last year as reflected by an annual decline of 17% for the Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO).VWO, one of the largest emerging markets ETFs by assets, shares some similarities with the aforementioned VGK. Like European stocks, emerging markets equities look like value plays and there is a chorus of investors willing to say things will not get much worse for developing economies.If the Federal Reserve slows its pace of rate hikes in 2019 and the dollar weakens, there could be upside to be had with emerging markets equities. * 7 Dark Horse Stocks Winning the Race in 2019 "There are at least some reasons to be hopeful for emerging Asian assets: oil prices have dropped about 40% from their October peak, which is a boon for countries that import the commodity. Central banks remain vigilant, while a growing number of analysts, including those at Goldman Sachs Group Inc. and UBS Group AG, say the dollar is close to its peak," according to Bloomberg. Vanguard Short-Term Corporate Bond ETF (VCSH)Expense ratio: 0.07% per yearOne way for investors to Fed-proof fixed income portfolios is to lower duration risk. The Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) is one of the best Vanguard ETFs on the short-duration side of the ledger. Plus, this Vanguard fund does not skimp on yield.VCSH has a yield of 2.77%, which is solid when considering the fund's average duration is just 2.7 years. This Vanguard ETF holds over 2,200 investment-grade corporate bonds.Over 59% of VCSH's holdings are rated AA or A while 45% are rated BBB. This Vanguard ETF outperformed the longer duration Markit iBoxx USD Liquid Investment Grade Index by about 600 basis points last year. Vanguard Mid-Cap Value ETF (VOE)Expense ratio: 0.07% per yearAs is the case with the aforementioned VTV, investors embracing the value factor in 2019 would benefit the Vanguard Mid-Cap Value ETF (NYSEARCA:VOE). Mid-cap stockshad a rough 2018 and value stocks were among the more egregious offenders in that category. This Vanguard ETF lagged the S&P MidCap 400 Index by about 240 basis points last year.VOE holds 203 stocks with a median market value of $14.2 billion, which is just outside of mid-cap territory. Like large-cap value strategies, this Vanguard ETF has a large financial services weight (23.9%). Consumer sentiment is important to the fortunes of this Vanguard ETF as the two consumer sectors combine for 27.50% of VOE's roster. * 7 Dark Horse Stocks Winning the Race in 2019 Vanguard Tax-Exempt Bond ETF (VTEB)Expense ratio: 0.09% per yearAfter establishing a rich tradition in the municipal bond index fund and mutual fund arenas, Vanguard got into muni ETFs with the Vanguard Tax-Exempt Bond ETF (NASDAQ:VTEB). This Vanguard ETF follows the S&P National AMT-Free Municipal Bond Index, one of the most widely followed gauges of municipal bonds.In terms of sheer number of holdings, the $4.7 billion VTEB is one of the largest municipal bond ETFs as it is home to nearly 4,200 bonds. This Vanguard ETF's holdings have an average maturity of 13.8 years an average duration of 5.6 years.As is to be expected with investment-grade municipal bond funds, credit risk is not an issue with this Vanguard ETF as over 90% of its holdings are rated AAA, AA or A.As of this writing, Todd Shriber owns shares of VWO. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Top Stock Picks From the Street's Best Analysts * 7 Tech Stocks Without China Exposure * 5 Strong-Buy Stocks That Crushed 2018 Compare Brokers The post 7 Top-Rated Vanguard ETFs to Buy in 2019 appeared first on InvestorPlace.
As trade war fears racked U.S. equities the past week, a move to safe-haven assets was abound, which benefited fixed income securities and bond-focused exchange-traded funds (ETFs). While investors can get core exposure via broad-based bond funds, they shouldn't forget to add municipal bonds (munis) as part of their fixed income strategy.
The ETF fee war continues after Vanguard decided to cut fees on 21 of its ultra low-cost ETF funds last week. This includes eight of its ten biggest ETFs. Among the ETFs in this latest round of expense ...
Municipal bonds are a specific corner of the bond market that has its own nuances to be wary of, such as costs and tracking errors, but this pair of ETFs eliminates the guess work involved--the Vanguard Tax-Exempt Bond ETF (VTEB) and iShares National Muni Bond ETF (MUB) . With bond market mavens warning investors of headwinds in the fixed income space like the possibility of an inverted yield curve, rising rates and BBB debt sliding out of investment-grade, investors need to be keen on where to look for opportunities. One area is within the municipal bond space, which may have gotten a boost following last November’s midterm elections.
Over the past several years, some of the largest issuers of exchange traded funds, including BlackRock’s iShares and State Street’s SPDR ETFs, have reduced fees on existing ETFs, introduced new low-cost ...
Vanguard Group has trimmed the fees on a handful of ETFs in the latest round of cost cutting on a number of products to gain an edge on competitors as an increasing number of investors look to cheap investment options.
Municipal bonds and the relevant exchange traded funds are prime destinations for conservative fixed-income investors. VTEB debuted in August 2015 as Vanguard's first municipal bond ETF, but the fund issuer had a rich tradition in municipal bond mutual funds prior to VTEB's launch. Today, VTEB has more than $4.1 billion in assets under management, putting it in the upper echelon of municipal bond ETFs in terms of size.
Some markets or market segments are easier to index than others. Nonstandard assets that are difficult to trade, like municipal bonds, can be difficult to index. Indeed, running an index-tracking municipal bond fund is a tricky proposition.
Conservative investors embrace municipal bonds for steady yields, tax advantages and reduced volatility. Munis also help diversify fixed-income portfolios. Investors who typically follow the Barclays U.S. ...
Historically, gaining access to municipal bonds through an index strategy has been difficult because the muni bond market is much more fragmented and expensive to trade than other fixed-income markets. An index-tracking fund like Vanguard Tax-Exempt Bond ETF VTEB now features exceptionally low tracking error, making it a solid choice for exposure to the broader municipal-bond market. VTEB offers broad exposure to investment-grade municipal bonds and is one of the cheapest funds in the muni national intermediate Morningstar Category, earning a Morningstar Analyst Rating of Silver.
President Trump's tax law limiting state and local tax deductions may benefit the municipal bond market as taxpayers seek to ease their higher tax burden.
According to the latest report from State Street Global Advisors, fixed-income exchange-traded funds (ETFs) took in $16.2 billion during a tumultuous December that saw the Dow Jones Industrial Average ...
In terms of pie, Christmas dinner tables can feature some of the most scrumptious offerings–pumpkin, pecan, chocolate cream, apple, cherry, and muni? U.S. municipal bonds represent a $3.8 trillion slice ...
Rising interest rates have been somewhat of a thorn in the side of municipal bond investors this year, but some market observers believe that overall, the asset class is on solid footing. That could bode ...