Vanguard Long-Term Bond ETF (BLV)
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Getting high income paired with high credit quality is possible when fixed income investors give the Vanguard Long-Term Bond Index Fund ETF Shares (BLV) a closer look. Fixed income investors are already in tenuous times with continuous inflation threats morphing from transitory to possibly longer.
Even with safe haven government debt yields like the benchmark 10-year Treasury note pushing higher, fixed income investors are demanding more from their portfolios, which Vanguard can provide with three of their exchange-traded funds (ETFs). Investors aren't painted into a corner of accepting only the riskiest debt in the bond markets.
Long-term bonds perform well when yields drop and economic expectations are low. Looking forward, neither of these are currently likely outcomes for 2022.
BLV: Inflation Is Picking Up, Not Good For Long-Term Bonds
The BLV ETF has benefited over the past few years from declining interest rates. More recent trends including yields climbing off the lows from 2020 represent a bearish headwind for long-term bonds.
Long-term bonds have been under pressure recently, as inflation expectations have risen and yield spreads have widened.
The Vanguard Long-Term Bond ETF blends the safety of treasuries and the higher yield potential of corporate bonds.
It might be worth waiting for a better entry point, but in the long term, this is a play on America's corporate healthiness overall.
Vanguard, the second-largest U.S. issuer of exchange traded funds, is at it again.
The Federal Reserve instituted its third rate decline recently after reversing course from its four straight rate hikes in 2019. As such, investors have been apter to take on risk via longer duration debt and as such, one ETF to consider is the Vanguard Long-Term Bond Index Fund ETF Shares (NYSEArca: BLV).