Vanguard Total Bond Market Index Fund (BND)
Increased Volatility Brings Back the 60/40 Portfolio
Before the pandemic hit in 2020, a decade-long bull run in the stock market saw the 60/40 portfolio slowly fall out of favor. With market volatility returning, that 60/40 split appears to be making a comeback.
3 ETF Options as Safe Haven Demand Drives Investors to Bonds
Bonds have once again become a default play to help hedge against stock market volatility. As renewed recession fears are adding market fluctuations to a typically tepid summer for stocks, bonds are an ideal safe haven, with three options from Vanguard to consider.
BND: The Easiest Way To Ride The Coming Bond Wave
Three years ago, we discussed BND, focusing on interest rate risk as the ten-year treasury yield bottomed out. BND has faced negative total returns over the past three years due to rising interest rates, but the outlook has changed. The ten-year yield is near the highest of the past decade, and potential rate cuts means potential for upside.
Consider These Key Options for Core Bond Exposure
While investors have been fixated on yields when it comes to bond exposure, the recent volatility could bring them back to fundamentals. Now is as good a time any to add core bond exposure as the equities roller coaster ride gets underway.
3 Core Options as Investors Add Bonds Ahead of Rate Cuts
Investors continue to pile into bonds ahead of Fed rate cuts, taking advantage of current yields before interest rate cuts take place. That said, fixed income investors looking to add core exposure can mull three options from Vanguard.
2 Investment-Grade Options as Investors Eschew Risky Debt
The scramble for attaining higher yields before central bank rate cuts doesn't mean investors aren't exercising due diligence. In fact, they're eschewing risky debt and opting for higher-quality options, according to the Financial Times.
Investors Pile Into Bond Funds Amid Attractive Yields
Investors continue to pile into bond funds, looking to add yield now before the Federal Reserve starts instituting rate cuts. Vanguard has both a passive and active option to get core bond exposure as well as yield.
Buy Everything (With Just 2 Vanguard ETFs)
Investing can be very complicated and confusing, which is why some people find it overwhelming. Looked at in a different light, investing can be fairly simple -- as simple as owning two exchange-traded funds.
BND: Falling Employment Stability Temporarily Lifts Bond Market Outlook
As services inflation has collapsed, I must revise my previous bearish stance on BND, as an inflationary rebound now appears unlikely. With job growth potentially overstated and full-time employment falling, the US appears likely headed into a period of much higher unemployment and lower consumer spending. Given debt, demographic, infrastructure, and geopolitical issues, I still expect higher long-term inflation, to the detriment of BND.
Yields Stabilizing, A Tight Equity Risk Premium Makes BND Attractive Today
The equity risk premium is 3.3%, historically low, which suggests that stocks are turning expensive compared to bonds. I have a buy rating on BND as a long-term core fixed-income holding, given its low expense ratio and high liquidity. Technical momentum for BND has improved, with potential resistance at $75 and a bullish upside target to $82 if a breakout takes place.
Bullish Bets on Bonds Persist Despite Fed-Speak
Cooling prices during the month of May are fueling bullish bets on bonds despite the latest Fed-speak to tamp down any notions of successive rate cuts at a rapid cadence. In the meantime, it could be an opportune time to take advantage of core bond exposure now before a potential rally.
Bonds Push Higher as Signs Point to Fed Easing
Incoming economic data could finally push the U.S. Federal Reserve over the edge when it comes to cutting interest rates. As such, bonds have been pushing higher as more signs point to central bank easing.
