BLV ETF

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.

One popular rule of thumb states that by subtracting your age from 110, you can figure out your ideal stock and fixed-income allocations. I've generally focused on stocks, and don't have nearly enough fixed-income assets.

Long-term bonds should rise as interest rates fall, making the Vanguard Long-Term Bond ETF a good pick. REITs benefit from lower rates, boosting the Vanguard Real Estate ETF.

BLV's performance has significantly declined over the past two years due to rising interest rates, leading to a 30% drawdown in share prices. The Federal Reserve's unprecedented rate hikes have caused bond yields to increase, impacting BLV's net asset value. Forecasted rate cuts by the Federal Reserve could potentially lead to an increase in the value of BLV's portfolio, earning the fund an upgrade.