VOO, SPY, IWM, BND and VTEB led ETF inflows last week as investors poured $22.7B into diverse fund categories.
Early signs of diminishing economic activity and inflation could be a harbinger for bond prices to rise. If so, consider taking advantage of a potential bond rally with a pair of ETFs from Vanguard.
BND offers low-cost, low-risk, broad bond market exposure, but its real returns have been mediocre and barely outpaced inflation. The fund's heavy diversification leads to underperformance compared to more focused bond ETFs, echoing Peter Lynch's 'diworsification' warning. Current macro risks—persistent inflation and high deficits—mean BND faces significant interest rate risk, limiting its near-term upside.
![]() BND 3 months ago Paid | Monthly | $0.22 Per Share |
![]() BND 4 months ago Paid | Monthly | $0.23 Per Share |
![]() BND 5 months ago Paid | Monthly | $0.23 Per Share |
![]() BND 6 months ago Paid | Monthly | $0.22 Per Share |
![]() BND 7 months ago Paid | Monthly | $0.23 Per Share |
![]() BND 3 months ago Paid | Monthly | $0.22 Per Share |
![]() BND 4 months ago Paid | Monthly | $0.23 Per Share |
![]() BND 5 months ago Paid | Monthly | $0.23 Per Share |
![]() BND 6 months ago Paid | Monthly | $0.22 Per Share |
![]() BND 7 months ago Paid | Monthly | $0.23 Per Share |
NASDAQ (NMS) Exchange | US Country |
This index represents a comprehensive measurement of the performance of a broad assortment of public, investment-grade, taxable, fixed income securities in the United States. It encompasses a variety of sectors, including government bonds, corporate bonds, and international dollar-denominated bonds, alongside mortgage-backed and asset-backed securities. These securities all share the common characteristic of having maturities greater than one year. The selection process for the fund's investments is carried out through a sampling method. To ensure adherence to its primary focus, at least 80% of its assets are invested in the bonds that constitute the index.
These are secure, investment-grade bonds issued by the government. They are known for their reliability and are considered a safe investment, offering returns at a lower risk compared to corporate bonds.
Issued by corporations, these bonds typically offer higher yields compared to government bonds, reflecting the greater risk associated with corporate operations and financial health.
This type of bond allows investors to gain exposure to international markets while investing in a currency that they may be more familiar with. These bonds can offer diversification benefits to an investment portfolio.
These are investments in a pool of mortgages, providing investors with periodic payments similar to bond coupon payments. They come with a level of risk that depends on the performance of the underlying mortgages.
Similar to mortgage-backed securities, these are bonds or notes backed by financial assets, other than mortgages, that provide regular payments to investors. This can include a wide range of asset types, from car loans to credit card receivables.