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BND

Vanguard Total Bond Market Index Fund

http://investor.vanguard.com/mutual-funds/profile/vbmfx

Industry

Asset Management - Bonds

This index measures the performance of a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States-including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities-all with maturities of more than 1 year. All of the fund's investments will be selected through the sampling process, and at least 80% of its assets will be invested in bonds held in the index.

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Bond yields remain above 4% despite expectations of Fed rate cuts, influenced by recent economic data and inflation concerns. The S&P 500 reached record highs with investors pricing in rate cuts. Treasury yields, crucial for mortgage rates and borrowing costs, are closely watched, with the 10-year U.S. Treasury note at 4.25%. Investors' expectations for rate cuts have moderated, affecting bond ETFs like BND, AGG, and TLT.

Portfolio Pulse from Natan Ponieman

March 26, 2024 | 7:14 pm

Vanguard, the second-largest ETF issuer globally, is known for its diverse portfolio and low fees, but notably lacks a Bitcoin ETF. With $2.5 trillion in AUM, it trails BlackRock Inc. (BLK) and emphasizes traditional investment vehicles over speculative assets like cryptocurrencies. Vanguard's conservative approach is highlighted by its absence of commodities, currency, or Bitcoin-related ETFs, citing the speculative nature and lack of inherent economic value in cryptocurrencies. Instead, Vanguard focuses on blockchain technology for capital market efficiency.

Portfolio Pulse from Piero Cingari

March 14, 2024 | 8:47 pm

The bond market experienced a rally in 2023, but analysts warn of potential over-optimism for 2024. The 10-year U.S. Treasury note yield has seen significant fluctuations, with a recent retreat from over 5%. Investors are considering a 'soft landing' scenario, but challenges like the fiscal deficit and corporate debt refinancing remain. Diverse views from experts at Allspring Global Investments, Sierra Mutual Funds, BlackRock, Manulife Investment Management, and Apollo Global Management highlight the uncertainty. Three ETFs, AGG, BND, and JNK, are suggested for investors interested in the bond market.

Portfolio Pulse from Bibhu Pattnaik

December 30, 2023 | 3:18 pm

The 60/40 investment portfolio, benchmarked by the iShares Core Growth Allocation ETF (AOR), has rebounded with a 13% growth in 2023 after a slump in 2022. The portfolio's performance is contingent on the Federal Reserve's interest rate decisions in 2024. Other ETFs that can be used to construct a 60/40 portfolio include SPY, TLT, VT, AGG, ACWI, BNDX, IVV, BND, VTI, and BNDW.

Portfolio Pulse from Piero Cingari

December 28, 2023 | 1:42 pm

U.S. ETFs have reached a new milestone with assets under management surpassing $8 trillion. The growth is attributed to a strong stock market performance and investor inflows. The SPDR S&P 500 ETF Trust (SPY), Vanguard S&P 500 ETF (VOO), and Invesco S&P 500 Equal Weight ETF (RSP) experienced significant inflows in December. Bond ETFs like the iShares 20 Year Treasury Bond ETF (TLT) also saw substantial inflows. The top 10 U.S. ETFs each hold over $100 billion in assets, with SPY being the largest globally.

Portfolio Pulse from Piero Cingari

December 19, 2023 | 3:23 pm

Investors have recently funneled billions into aggressive bond ETFs, anticipating multiple Federal Reserve rate cuts in 2024. This trend reflects a strong belief in a disinflationary trend and a potential shift in the Fed's monetary policy. The inflows have been particularly notable in ETFs that include long-term Treasury bonds, emerging-market bonds, and high-yield corporate bonds. The top 10 bond ETFs by fund inflows in the past month are led by iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and include others like iShares Core U.S. Aggregate Bond ETF (AGG) and SPDR Bloomberg High Yield Bond ETF (JNK).

Portfolio Pulse from Piero Cingari

December 05, 2023 | 11:18 pm

Fund managers are recommending a shift from cash and money market funds to Treasury and mortgage bonds, citing decreasing inflation and potential economic slowdown. Money market fund assets have reached a record $5.73 trillion, but with the Federal Reserve's interest rate hikes potentially nearing an end, bonds are becoming more attractive. The two-year Treasury bond yields 4.89%, while the 5- and 10-year bonds yield 4.44%. Economists predict either an imminent recession or a soft-landing scenario. Mortgage bonds are also suggested as a good investment if interest rates decrease, with increased regulation making them safer than in 2008.

Portfolio Pulse from Natan Ponieman

November 21, 2023 | 9:29 pm

All corporate logos and prices are for illustrative purposes only and are not a recommendation, an offer to sell, or a solicitation of an offer to buy any security.