BLV ETF

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.

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.

Vanguard Long-Term Bond ETF is a great option. Just make sure long-term is what you want.

Long-term bonds could become far more valuable if rates fall. There are two excellent Vanguard ETFs that focus on long-term bonds.