VGIT ETF

Bonds diversify portfolios and reduce volatility, with government bonds being low-risk and corporate bonds offering higher returns but higher risk. Vanguard Total Bond Market Index Fund ETF (BND) includes 25% corporate bonds, reducing the benefits of bond inclusion in a portfolio. Intermediate-term treasury bond funds (VGIT) exhibit lower market correlation, providing better risk-adjusted returns when paired with US total market funds.

Stubborn inflation could keep the benchmark 10-year Treasury yield elevated, if ING market strategist Padhraic Garvey is correct. For yield seekers in Treasury bonds, this is good news, but maybe not so for those hoping for price appreciation.

Intermediate-term treasuries, like VGIT, offer superior risk-adjusted returns and better volatility reduction compared to short-term and long-term treasuries and corporate bonds. VGIT provides a low expense ratio of 0.04% and high liquidity, making it an excellent choice for adding fixed income to portfolios. Backtesting shows intermediate-term treasuries improve portfolio Sharpe Ratio and reduce volatility significantly, outperforming both short-term and long-term treasuries.

A bond comeback is in full swing, as evidenced by the most recent inflows into a typically tepid summer for stocks. That said, investors may want to consider adding bond exposure, especially Treasuries via three options from Vanguard.

As yields start to slide amid the anticipation of interest rate cuts, Treasury bonds are rallying. That opens the pathway for investment opportunities in three Vanguard ETFs.

The stock and bond markets are being affected by high yields, leading to confusion among investors at the beginning of the second quarter. This has resulted in traders increasing their bearish bets on bond prices.

With the personal consumption expenditures (PCE) index moving to its lowest level the last few years, the path may finally be open for rate cuts. That said, fixed income investors may want to lock in higher yields in the current rate environment, before the higher-for-longer narrative fades into the background.

The issuance party that 2024 is experiencing in the bond market isn't relegated to just corporate debt. The U.S. Treasury is also joining in on the action, giving fixed income investors opportunities in safe haven government debt.

The Federal Reserve is expected to make interest rate cuts this year. But representatives from the U.S. central bank are sending the message that the cuts won't be coming soon.