91.47 0.00 (0.00%)
After hours: 5:02PM EST
|Bid||91.41 x 2900|
|Ask||91.49 x 1100|
|Day's Range||91.11 - 91.49|
|52 Week Range||81.98 - 92.23|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||13.59%|
|Beta (5Y Monthly)||1.05|
|Expense Ratio (net)||0.07%|
ANGL seeks to replicate as closely as possible the price and yield performance of the ICE BofAML US Fallen Angel High Yield Index. The index is comprised of below investment grade corporate bonds denominated in U.S. dollars that were rated investment grade at the time of issuance. ANGL essentially focuses on debt that has fallen out of investment-grade favor and is now repurposed for high yield returns with the downgraded-to-junk status.
It looks like the government of India is set to debut its first bond exchange-traded fund (ETF), which will be launched by investment firm Edelweiss Asset Management. The ETF will come in two flavors—one with a 3-year note and the other a 10.
The search for yield is certainly a global phenomenon given the low rates offered in government debt around the world. It opens the doors for ESG funds to shine by offering high yield bond options as in the case of BlackRock’s iShares € High Yield Corp Bond ESG UCITS ETF (EHYD) and the iShares $ High Yield Corp Bond ESG UCITS ETF (DHYD). The concept married high yield with the growing ESG space that is starting to gain more traction in the capital markets worldwide.
As 2019 comes to a close, it’s going to be another banner year for bonds, which have moved higher along with stocks thanks to an uncertain economic backdrop that saw investors pile heavily into bonds, especially during the summer.
“As 2019 begins to draw to a close, investors are looking at how their investment portfolios have performed,” wrote Dan Caplinger in Motely Fool. “Yet what's surprising is that in a year in which stocks are performing well, the bond market has also managed to produce solid returns,” Caplinger added.
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.
The Treasury Department has been contemplating the release of an ultra-long bond, but it appears debt issues with a 50-year maturity date may be coming sooner than we think. The news comes as yields have been at record lows and talks of zero to negative interest rates are creeping into bond market vernacular.
The Treasury Department has been contemplating the release of an ultra-long bond, but it appears debt issues with a 50-year maturity date may be coming sooner than we think. The news comes as yields have been at record lows and talks of zero to negative interest rates are creeping into bond market vernacular. The news comes after the Federal Reserve lowered interest rates for a third time.
As the Fed raised rates four times last year, short duration bond funds, including those in the corporate bond space, were popular with income investors. Now, with the Fed easing, investors can consider more duration while accessing added yield with the likes of the Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ: VCIT). Home to $25 billion in assets under management and an expense ratio of 0.07%, the Vanguard Intermediate-Term Corporate Bond ETF is one of the largest and cheapest corporate bond ETFs on the market regardless of duration profile.
Rate cuts in 2019 may have tamped down any sizeable gains in the fixed income exchange-traded funds (ETFs), but bonds in general are still an essential component in an investor's portfolio. In an interview with Morningstar's director of personal finance, Christine Benz, she discusses why fixed income is necessary.
October brings playoff baseball into sports, but for the capital markets, volatility could bring curve balls to investors. As such, when playing in the fixed income exchange-traded fund (ETF) market, it’s ...
Higher bond prices are conversely pushing down yields to fresh lows for Treasury notes, causing investors to seek yield in higher, riskier debt issues. As global growth fears persist, bonds will likely continue to be the default safe haven as they have been for years when market downturns have taken place. Per a Fortune report, “Global interest rates, already low for most of the decade since the Great Recession, are falling again, making it harder for pension funds and small investors to harvest the slow-and-steady interest income that makes bonds the foundation of many retirement funds.
As more investors pile into safe-haven government debt as a default risk-off maneuver, Treasury Secretary Steve Mnuchin says a 50-year bond offering is under serious consideration. It’s something the Treasury department has been mulling for some time, but Mnuchin confirmed the idea could actually come into fruition.
As more investors pile into safe haven government debt as a default risk-off maneuver, Treasury Secretary Steve Mnuchin says a 50-year bond offering is under serious consideration. It’s something the Treasury department has been mulling for some time, but Mnuchin confirmed the idea could actually come into fruition.
A lot of market mavens are trumpeting the benefits of shifting into value and away from growth in the current market environment, but how can that translate into the fixed income space? One area is investment-grade ...
As some grow wary of risks in the equity market, investors are shifting their attention to corporate bonds and related exchange traded funds. According to Lipper data, investors yanked $46.2 billion from ...
An influx of capital into safe haven government bonds have put a strain on Treasury yields, causing investors to search the every corner of the bond market for that seemingly elusive yield. However, there ...
It’s only a matter of time before it’s more in the United States,” Greenspan said on CNBC’s “Squawk on the Street ” on Wednesday, adding investors should watch the 30-year Treasury yield, which hit an all-time low last week. “We’re so used to the idea that we don’t have negative interest rates, but if you get a significant change in the attitude of the population, they look for coupon,” Greenspan said. While bonds have been the default safe haven amid the recent volatility in the equities market, it can be daunting to look at all the options, such as government debt and corporate bonds.
While bonds have been the default safe haven amid the recent volatility in the equities market, it can be daunting to look at all the options, such as government debt and corporate bonds. One way to go about building a proper bond portfolio is to consider the risks first and foremost. When it comes to investing in bonds, there are typically two camps, according to MarketWatch's Jared Dillian.
The concept of buy and hold could reach extreme levels in the government debt market as U.S. officials are contemplating the issuance of ultra-long Treasury bonds that could span 50 to 100 years. Per a report in Barron's, "U.S. officials have revived a conversation about issuing ultra-long Treasury bonds, which would mature in 50 to 100 years, now that long-term borrowing costs have fallen to record lows.
The bond markets have been consistent in their message that the inverted yield curve is certainly something to take note of, but CNBC market analyst Ron Insana warns economists not to dismiss the recession ...
The yield on the benchmark 30-year note sank to a new low on Wednesday as more fretting in the capital markets spurred a push for long-term safe haven assets like government debt. “It’s kind of my feeling that you just don’t have enough fixed income in the world to actually satisfy the demand. “But my feeling is that interest rates are telling you that there’s some very bad news down the road,” he added.