Vanguard Short-Term Bond ETF (BSV)
BSV Price and Sentiment
BSV Latest news
For the second consecutive month, mutual fund investors injected $6.9 billion into conventional funds for September. Fixed income funds (+$35.5 billion) witnessed net inflows for the seventeenth month in a row, while money market funds (+$2.6 billion) experienced net inflows for the second.
A September drawdown could be a harbinger of even more volatility to come in October, giving fixed income investors more reason to prepare by shortening debt duration. Rising yields have been bringing heavy volatility to the stock market indexes as of late.
We highlight five ETFs that are the top creators this year and can continue to be investors' darlings for the rest of the year should the current market trends prevail.
Amid the wild swings in the stock market last week, one market occurrence going on quietly in the background was rising yields. If the trend persists, getting shorter duration could help stem the tide with the Vanguard Short-Term Bond Index Fund ETF Shares (BSV).
Overall ETFs saw outflows of more than $29.6 billion for the week (Sep 17-Sep 23), with approximately $27.5 billion in outflows on Monday alone, according to ETF.com.
With the S&P 500 inching to new highs, it's no wonder that equities are seeing the majority of fund flows in Vanguard's ETF suite, but a pair of bond funds are also receiving strong flows year-to-date. As part of the top five in fund flows YTD, bond funds like the Vanguard Total Bond Market Index Fund [.
Last winter, I said the Vanguard Short-Term Bond ETF would be a good choice if interest rates rose. I still think it is as rates rose until they dipped again.
For the second month running, mutual fund investors were net sellers of fund assets, redeeming $15.0 billion from conventional funds for July.
Short-term bond funds can be great places to park cash. Vanguard has a pair of shorter duration options to consider.
Two Federal Reserve officials recently gave cues of a sooner-than-expected QE taper. Play these bond ETFs if rates rise.