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.
Consider Long-Term Bonds as Interest Rates Fall
With short-term bonds getting most of the fanfare during the Fed's aggressive rate hiking cycle, more investors are looking to long-term bonds again. This is especially the case as interest rates fall amid Fed easing.
3 Long-Term Bond ETFs for a Steepening Yield Curve
Aggressive rate hikes by the Federal Reserve added to a steeper yield curve the last few years. But easing monetary policy has seen it flatten as of late.
Got $10,000? These ETFs Could Turn It Into Over $500 of Annual Passive Income.
These ETFs can produce a lot of passive income.
BLV: Long-Term Treasuries May Stay Under Pressure For A While
The macro landscape for long-term bonds is tricky these days. Given the extreme political and fiscal uncertainty, I don't expect any meaningful appreciation of long-term bonds as long as the US is not in a recession. I'm neutral on the BLV for now, but there are still reasons to be optimistic in the longer term.
$100,000 Invested in These 3 Vanguard ETFs Could Pay You $5,400 in Annual Income
Income investors will find a lot to like with these Vanguard exchange-traded funds.
2 Vanguard ETFs to Buy Hand Over Fist and 1 to Avoid
The time is right for two Vanguard ETFs.
Vanguard Long-Term Bond ETF: What You Need to Know Before You Buy
Vanguard Long-Term Bond ETF is a great option. Just make sure long-term is what you want.
2 Fixed-Income ETFs to Consider Before the Fed Cuts Rates
Long-term bonds could become far more valuable if rates fall. There are two excellent Vanguard ETFs that focus on long-term bonds.
I Need More Fixed Income in My Portfolio. Here Are 3 Great Vanguard ETFs That Could Help Me Get It.
One popular rule of thumb states that by subtracting your age from 110, you can figure out your ideal stock and fixed-income allocations. I've generally focused on stocks, and don't have nearly enough fixed-income assets.
