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.
Moody's downgrade and surging interest costs signal a tipping point, with over half of US tax revenue potentially going to interest by 2028. BND faces long-term downside risk of 15-35% as inflation expectations rise and global demand for Treasuries wanes, evidenced by gold's outperformance. If the Fed loses independence, BND could decline faster as the likelihood of pro-inflation dovish policies grows.
I'm on a mission to produce more passive income. My strategy is to grow my passive income so that it can cover my basic living expenses.
The CboeVolatility Index (VIX) spiked higher through the first week of April, prompting investors to seek refuge in safe haven assets like bonds. While passive bond ETFs offer broad-based exposure, investors shouldn't overlook active options that exist.
April was volatile and challenging for investors. We wrapped up the month with the S&P 500 still down about 8% and the Nasdaq Composite down about 10% so far in 2025.
Congratulations to Vanguard, which is celebrating its 50th anniversary today. Vanguard is well-known for making investing more accessible, affordable, and efficient for investors over the past 50 years.
Despite some recent (and very significant) volatility in the fixed income market, bonds continue to be one of the only asset classes to see relative outperformance to stat 2025.
After the last two trading days, some investors might be questioning their exposure to U.S. equites. On the heels of consecutive 20%-plus calendar year gains for the Vanguard 500 ETF (VOO), large-caps have sold off.
Today, Vanguard released the Vanguard Short Duration Bond ETF (VSDB), the latest offering in the firm's fixed income suite. VSDB's objective is to generate strong income while limiting a portfolio to potential price volatility.
The bond market has been showing its resilience despite the latest stock market correction. Moving forward, investors may want to keep investment-grade options close, with a few from Vanguard to consider.