Summary
BLV Chart
BLV: Needs A Recession To Outperform (Rating Downgrade)
The Vanguard Long-Term Bond Index Fund ETF (BLV) is currently a 'Sell' due to unfavorable macro conditions and narrow corporate spreads. BLV's long duration of 13.5 years makes it highly sensitive to changes in corporate credit spreads and long-term interest rates. Corporate spreads are at historic lows, and rising risk-free rates due to U.S. debt concerns pose significant downside risks.
These Vanguard ETFs Rebounded After Trump's First Days Back in the White House. Should Investors Beware the Bounce?
Quite a few stocks gained momentum in the weeks preceding Donald Trump's second inauguration as U.S. president. It was a different story for most bonds, though.
Why BLV Is Outclassed By Long-Term Treasury Funds
Vanguard Long-Term Bond Index Fund ETF Shares tracks the Bloomberg U.S. Long Government/Credit Float Adjusted Index, offering diversified exposure to long-term, investment-grade U.S. bonds with 10+ years to maturity. BLV holds a roughly 50/50 mix of corporate and government bonds, plus minor municipal and cash holdings, as per Seeking Alpha. VGIT is preferred over BLV for fixed income positions due to its lower correlation with equities, enhancing portfolio stability.
Vanguard Long-Term Bond ETF (BLV) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
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Has Vanguard Long-Term Bond ETF ever had a stock split?
Vanguard Long-Term Bond ETF Profile
| ARCA Exchange | US Country |
Overview
This investment vehicle is designed to provide investors with exposure to a broad range of debt securities, primarily focusing on medium to long-term horizons. It encompasses a diversified portfolio that includes U.S. government bonds, high-grade corporate bonds, and investment-grade international bonds that are denominated in U.S. dollars. The inclusion criteria for the bonds are stringent, necessitating a minimum maturity period of over ten years and adherence to investment-grade standards to ensure a balanced risk profile. The fund employs a sampling process to select investments, aiming to mirror the performance of the encompassing index while managing risk and liquidity effectively. Moreover, a significant portion of the fund's assets, at least 80%, is dedicated to investments directly represented in the index, aligning the fund's performance closely with its benchmark.
Products and Services
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U.S. Government Bonds
These are debt securities issued by the United States Department of the Treasury. The fund includes these bonds as they are considered low-risk investments, backed by the full faith and credit of the U.S. government. They provide a secure, albeit modest, return for investors, making them a cornerstone of the fund's diversified approach.
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Investment-Grade Corporate Bonds
Investment-grade corporate bonds are issued by companies with a relatively high credit rating from established rating agencies. These bonds offer higher yields than government securities, compensating for the slightly increased risk. Including these bonds diversifies the fund's income sources and enhances its yield potential.
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Investment-Grade International Dollar-Denominated Bonds
This category includes bonds issued by foreign governments or international corporations but are denominated in U.S. dollars. The inclusion of these bonds allows investors to gain exposure to international markets without the added risk of currency fluctuations. These bonds are selected for their investment-grade status, ensuring a level of safety while offering the potential for higher returns compared to domestic bonds.
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