|Bid||77.53 x 100|
|Ask||77.60 x 200|
|Day's Range||77.57 - 77.64|
|52 Week Range||77.48 - 79.57|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.44|
|Expense Ratio (net)||0.07%|
Bonds can reduce risk in an investment portfolio. This is a solid option for low-cost, efficient exposure to U.S. short-term investment-grade corporate bonds. Its conservative strategy keeps credit and interest-rate risk low and has a durable cost advantage over Morningstar Category peers.
If you've built a solid portfolio of funds, the last thing you want to do is tear it apart and build a new one simply because the stock market is doing one of its periodic swan dives. But that doesn't mean you shouldn't tinker around the edges in a market that acts like it wants to go down. You might cut, say, 5% of your stock allocation and put the proceeds into a low-risk bond fund. If you think your investments need more rearranging, you might take your most volatile fund and replace it with a lower-risk offering. Where to look for a replacement? Vanguard funds include a fistful of first-rate defensive offerings that, while they'll still likely lose money in a bear market, they should still hold up better than most other funds. Here are the six best Vanguard funds to own in a bear market. Note: Some of these funds are only available directly from the low-cost provider. At the same time, if you use a discount broker, you may be able to buy cheaper Admiral shares without meeting Vanguard's minimum, which typically ranges from $10,000 to $50,000 depending on the fund. SEE ALSO: The 25 Best Low-Fee Mutual Funds You Can Buy
Rising interest rates may reach a level that matches U.S. President Donald Trump’s relationship with the media. The president’s disdain for rate hikes won’t gain any sympathy from the Federal Reserve as ...
The Dow Jones Industrial Average fell over 300 points in the early session as the ebbs and flows of volatility made a reappearance with the index erasing its previous losses to post a mild gain before settling to a 20-point loss as of 1:20 p.m. ET. Treasury yields followed the rise in U.S. equities as the benchmark yields edged higher, highlighting the confluence between the stock and bond markets that have been seen as of late. The lockstep between stocks and bonds as of late is not something typically seen within the capital markets as both are prone to marching to the beat of their own drum. Last week's equity sell-off was paired with rising yields as the capital outflows from both markets resulted in a sea of red across the two capital markets.
Compared to their longer duration counterparts and U.S. equities, short-term bond strategies have been an option for fixed-income investors seeking a return in today's rising rate environs, while also avoiding the volatility of the extended bull run in the stock market. While trade wars continue to cause bouts of volatility in the capital markets, short-term bond funds can be the elixir for risk-averse investors who want to minimize the impact of volatility and still earn a return given the rising rate landscape. Bonds with a shorter duration also reduce the exposure to inflation, which can tamp down the returns of fixed-income investments. In addition, bond giant Pimco found in an analysis that these short-term strategies have produced an annualized volatility of less than 1% over a 10-year period--compare this to stocks, which have produced a 15% annual volatility and 10% for long-term bond strategies.
Market mavens like hedge fund billionaire Ray Dalio and just recently, David Tepper, founder of hedge fund Appaloosa, have likened the current state of the bull market to a baseball game that is in its ...
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.
Investing doesn't need to be complicated or expensive. Build a dirt-cheap portfolio that can last a lifetime with just one stock ETF and one bond ETF.