Vanguard Long-Term Bond Fund
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Cambridge Financial Group LLC bought a new position in Vanguard Long-Term Bond ETF (NYSEARCA:BLV) during the third quarter, according to its most recent disclosure with the SEC. The firm bought 10,665 shares of the company's stock, valued at approximately $756,000. Other institutional investors and hedge funds also recently bought and sold shares
Beacon Capital Management Inc. reduced its position in shares of Vanguard Long-Term Bond ETF (NYSEARCA:BLV) by 88.6% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 609,558 shares of the company's stock after selling 4,749,724 shares during the period. Vanguard Long-Term
Hershey Financial Advisers LLC purchased a new stake in Vanguard Long-Term Bond ETF (NYSEARCA:BLV) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 12,408 shares of the company's stock, valued at approximately $863,000. Several other hedge
After the Fed just cut rates a second time this year, a steeper yield curve could force bond investors to reconsider the long end again. That said, they can play the long game with ETF options from Vanguard that focus on maximizing yield by investing in bonds with maturity dates extending past 10 years.
Vanguard Long-Term Bond Index Fund ETF Shares offers diversified exposure to long-duration, investment-grade US government and corporate bonds with a low 0.03% expense ratio. BLV is highly sensitive to interest rate movements, benefiting from falling long-term rates and stable credit spreads, making it a strong counterweight in portfolios. Current macro indicators suggest a favorable environment for BLV, with gradual Fed rate cuts and contained credit spreads supporting potential price appreciation.
Many investors focus primarily on stocks. However, the global bond market is even bigger than the stock market.
BLV's long duration amplifies both risk and potential reward, making it highly sensitive to interest rate changes and recent market volatility. Current yields are attractive, but tight credit spreads and economic uncertainty suggest caution, especially for investors wary of corporate credit risk. Investors seeking stability may prefer shorter-duration or treasury-only funds, as BLV's volatility can be significant in the near term.
BLV offers diversified exposure to long-term, investment-grade US government and corporate bonds, but is highly sensitive to interest rate changes due to its long duration. Current macro metrics indicate stabilization and potential for future rallies, yet recent positive convexity and monetary easing expectations have already boosted BLV's performance. Fed policy shifts, especially QE and balance sheet changes, significantly impact BLV's NAV; recent trends show increased demand for long-maturity bonds.
The Vanguard Total Bond Market ETF (BND 0.19%) is the biggest exchange-traded fund (ETF) focused on the bond market, with over $129.5 billion of assets under management . As the name suggests, BND provides investors with broad exposure to the bond market.
Exchange-traded funds (ETFs) are sort of like ice cream: There's a flavor that should appeal to every person.
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.
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.
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.
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.
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.
These ETFs can produce a lot of passive income.
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.
Income investors will find a lot to like with these Vanguard exchange-traded funds.
The time is right for two Vanguard ETFs.