Latest news with #fixedIncome
Yahoo
5 days ago
- Business
- Yahoo
ETF Investors Are 'Yield Hunters': Alex Morris
Benchmark 30-year Treasury bonds surged above 5.1% last week to trade near the highest in almost two decades. Despite the reputation that BlackRock's iShares 20+ Year Treasury Bond ETF is a "widow maker" as it shedded more than 40% in the past five years, investors are still buying in, hoping that long-term Treasuries will finally bounce back. "Bloomberg ETF IQ" discusses fixed income funds with Alex Morris, CEO F/m Investments.
Bloomberg
6 days ago
- Business
- Bloomberg
ETF Investors Are 'Yield Hunters': Alex Morris
Benchmark 30-year Treasury bonds surged above 5.1% last week to trade near the highest in almost two decades. Despite the reputation that BlackRock's iShares 20+ Year Treasury Bond ETF is a "widow maker" as it shedded more than 40% in the past five years, investors are still buying in, hoping that long-term Treasuries will finally bounce back. "Bloomberg ETF IQ" discusses fixed income funds with Alex Morris, CEO F/m Investments. (Source: Bloomberg)
Yahoo
23-05-2025
- Business
- Yahoo
Vanguard Introduces Pair of New Muni Bond ETFs: VTEL, MUNY
Vanguard, with roughly $2.9 trillion in 89 ETFs, is expanding its bond exchange-traded fund lineup with two new tax-exempt municipal bond ETFs, the asset management giant announced Thursday. Both the Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and the Vanguard New York Tax-Exempt Bond ETF (MUNY) are designed for investors looking to generate tax-exempt income through high-quality fixed income. Each ETF comes with a 0.09% expense ratio and may be attractive to investors who prefer passive management, according to a press release issued by Vanguard. 'This is a really great time for investing in muni bonds,' Perryne Desai, senior fixed-income product manager at Vanguard, told 'When you look at the long end of the curve, you're getting almost the same yield from a 30-year municipal product as you are in a Treasury product, and then you get the tax-equivalent benefit.' The introduction of these funds builds on years of launching similar products, starting with the flagship Vanguard Tax-Exempt Bond ETF (VTEB) in 2015. The firm then debuted the Vanguard Short-Term Tax-Exempt Bond ETF (VTES) in 2023, followed by the Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) and Vanguard California Tax-Exempt Bond ETF (VTEC) in 2024. The two funds introduced today 'represent the finality of that lineup build in a lot of ways,' Desai said. VTEL offers investors exposure to longer duration municipal bonds, low fees, tax efficiency and trading flexibility. 'We wanted to create the duration positioning for clients so they can choose where along the curve they'd like to invest, rather than having an all-curve product,' Desai added. 'Lots of people are very happy and comfortable in our VTEB product, but some like to break up duration into the various buckets—short, intermediate and long—and we wanted to make sure that they had the tools and the toolkit that they would want to use.' And like the California-specific VTEC, MUNY gives investors in a large, high-tax state the ability to access muni bonds from their state at a low cost. Vanguard's suite of muni products now includes six index ETFs, two active ETFs, 12 active mutual funds, one index mutual fund and three money market | © Copyright 2025 All rights reserved
Forbes
22-05-2025
- Business
- Forbes
5 Vanguard Fixed Income Funds To Generate Income With Lower Risk
Whether you're seeking a one-and-done total bond fund, tax-exempt fund, or exposure to emerging ... More market bonds, Vanguard has a fixed income fund for you. As investors navigate persistent market instability driven by global trade tensions, tariff negotiations, and the rise of AI disrupting industries, many have looked to bonds to provide predictable income and buoy their portfolios. One of the core leaders in the brokerage industry offering a stable of low-cost, well-structured funds including fixed-income funds, which many investors turn to for fund selection, is Vanguard. Vanguard's fixed income funds include government, corporate, treasury and tax-exempt bond funds, the best of which you can find below to generate income for your portfolio with generally less risk than equity funds. Vanguard fixed income funds are investment funds which invest primarily in bonds, offering income with low expenses ratios. These income funds invest in corporate bonds, U.S. treasuries and municipal bonds offering income and a range of return in exchange for a relatively low level of risk. Vanguard's funds allow investors to both earn income and limit downside risk, making them perfect for retirees and investors diversifying investments beyond equities. The methodology used to select these funds was based on finding Vanguard fixed income funds with a strong dividend yield, low cost and a range of fixed income offerings so that any investor seeking bond exposure could find the right diversifying tool for them. Other considerations included the trailing 3-year return for the fund, the credit quality of fund holdings and the total net assets of the ETF. The expense ratio for each fund is low and as you'll read, there are trade offs you can take based on income potential, trailing return and the sector of the funds, so that you can select the right fund. The Vanguard Total Bond Market ETF launched in 2007 is a fixed income fund which provides diversified exposure to the total U.S. investment bond market. Its portfolio includes a mix of government, mortgage-backed and corporate bonds. This fund offers liquidity, diversification and very low-cost exposure along with reliable income, making it a perfect choice for conservative investors. BND is a top choice due to its broad exposure to the entire U.S. bond market, delivering diversification between both the public and private sectors. Its blend of high-quality bonds is perfect for retirees and conservative investors seeking to add income and low-risk return without much need for additional U.S. bond funds. BND's very low expense ratio and reliable yield will allow investors to maximize yield from the fund as well. The Vanguard Short-Term Corporate Bond ETF launched in 2009 focuses on investing in short-term U.S. corporate bonds offering both yield and low duration risk. With primary holdings of A and BBB rating short-term bonds, it delivers over 4% with less sensitivity to interest rate changes. This ETF is perfect for investors concerned with rising interest rates seeking reliable income with low price volatility. VCSH is a top choice because of its high 4.05% dividend yield with lower sensitivity to interest rate changes. Its high-quality corporate bond exposure and limited duration risk makes it a great fit for investors who want higher dividend payments with less volatility. VSCH has also logged higher returns of 4.36% in its category over the last 3 years. The Vanguard Long-Term Treasury ETF launched in 2009 provides investors exposure to long-term U.S. Treasury bonds, as the name suggests, offering highly-rated government debt with maturities of 10 years or longer. While its long-term nature makes the ETF more volatile when rates increase, VLGT performs well when rates fall or during uncertain times. With a high yield and basement-level credit risk, this ETF is a good choice for investors with high equity exposure or who predict upcoming rate cuts. VGLT is a top choice for investors seeking exposure to long-term U.S. treasuries and who wish to hedge against stock market downturns or deflation. While the 3-year trailing return is poor, this ETF offers great long-term income when rates are cut as well as near zero credit risk. The Vanguard Emerging Markets Government Bond ETF, launched in 2013, offers exposure to government bonds from emerging markets, delivering high yield in exchange for higher credit risk. VWOB holds sovereign bonds with BBB and A ratings as well as U.S. dollar-denominated debt. This diversified ETF is better suited to investors who can tolerate risk in exchange for higher yield and want exposure beyond U.S. interest rate influenced bonds. VWOB is a top choice because of its high yield and non-U.S. bond diversification which is best suited for investors who can tolerate higher credit risk. While this ETF is riskier than some of the others on this list, its holdings are diversified across emerging market countries. The Vanguard Tax-Exempt Bond ETF launched in 2015 delivers tax-free income through extensive holdings of U.S. municipal bonds. VTEB holds primarily AA and AAA rated bonds from both state and local governments, making it best suited for taxable accounts and high-income investors. With a respectable yield and low expense ratio, VTEB is an excellent source of tax-efficient reliable income. VTEB is a top choice due to its federally tax-exempt income and highly-rated municipal bond holdings. With low fees and positive returns, this ETF is a great fit for high earners seeking income in their taxable accounts. Bottom Line As you have now learned, Vanguard fixed income funds are not a monolith category and there are a range of offerings depending on your risk tolerance, investment aims and desired bond category. Whether you're seeking a one-and-done total bond fund, tax-exempt fund, or exposure to emerging market bonds, Vanguard has a fixed income fund for you. With Vanguard's signature low fees, reliable yield track record, and well-structured offerings, these bond funds can provide income, diversification, and even strong returns for your portfolio. Yes, Vanguard has a number of fixed income funds including both ETFs and mutual funds which invest in government, tax-exempt, corporate, and treasury bonds. Vanguard's Total Bond Market ETF (BND) is an excellent choice for passive income as it delivers broad bond market diversification, a reliable dividend yield and low cost, covering a portfolio's need for bond exposure. Yes, Vanguard's fixed income funds are good for beginner investors as they offer diversified access to government, corporate and tax-exempt bonds with low expense ratios.
Bloomberg
22-05-2025
- Business
- Bloomberg
Yields Likely To Go Higher: Marie-Anne Allier
Carmignac Fund Manager of Fixed Income Marie-Anne Allier gives her outlook on yield. She speaks with Guy Johnson, Kriti Gupta and Anna Edwards on 'The Opening Trade.' (Source: Bloomberg)
