Vanguard Total Bond Market ETF (NASDAQ: BND)

最新ニュース Vanguard Total Bond Market ETF (NASDAQ:BND)

Vanguard Total Bond Market ETF

Bloomberg Barclays U.S. Aggregate Float Adjusted Index measures the performance of a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States-including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities-all with maturities of more than 1 year. All of its investments will be selected through the sampling process, and at least 80% of its assets will be invested in bonds held in the index.

FlexShares Core Select Bond Fund

Quadratic Deflation ETF

NEOS ETF Trust NEOS Enhanced Income Aggregate Bond ETF

Series Portfolios Trust Infrastructure Capital Bond Income ETF

BANCO DE SABADELL SA ORD by Banco De Sabadell SA

Banco de Sabadell SA

BANCO DE SABADEL UNSP/ADR by Banco De Sabadell SA

Vanguard Total World Bond ETF

Vanguard Total International Bond ETF

In a year dominated by ongoing market volatility, increasing geopolitical risks, and a highly unpredictable rate environment, one constant has remained in the investment world: Vanguard&#8217;s dominant presence in the <a href="https://www.benzinga.com/etfs">ETF space</a>. 
The company has attracted over $150 billion in ETF inflows during the year to date (as of May 18), per FactSet data cited by Etf.com, headed by the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), which alone accounted for $82 billion. This figure not only tops all other ETFs industry-wide but also underscores a growing divergence in investor behavior: a decisive shift toward low-cost, rules-based strategies.
Also Read: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/06/46060008/why-active-fixed-income-etfs-quietly-dominate-in-2025">Why Active Fixed-Income ETFs Quietly Dominate In 2025</a>
As asset managers grapple with fee pressures, intensifying competition, and an increasingly discerning investor base, Vanguard&#8217;s ascent is proving to be a cautionary tale for traditional fund houses.
<h2 class="wp-block-heading">Fee Discipline Meets Market Discipline</h2>
The secret to Vanguard&#8217;s success lies in a framework prioritizing cost minimization and index tracking above tactical play and thematic story. In an environment where returns are increasingly hard to forecast, investors are seeking out funds such as VOO and Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>) for their reliability, scale, and economies of scale.
VOO, with a mere 0.03% expense ratio, offers the same underlying index as SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) (with expense ratio of 0.09%) but at a materially lower cost. This compounds over time, especially for long-term investors, and makes Vanguard&#8217;s ETFs a compelling vehicle for buy-and-hold investors.
Outside of VOO, vehicles like VTI, Vanguard Mid-Cap Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VO#NYSE">VO</a>), and Vanguard Growth Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) have each attracted billions of new assets. Combined, Vanguard&#8217;s equity ETFs collectively have secured more inflows than some entire ETF families have in total assets managed.
<h2 class="wp-block-heading">Global Diversification And The Rebalancing Trend</h2>
Though U.S. large-cap equities are still the focal point, Vanguard&#8217;s international and fixed-income ETFs are also coming back into favor. To date, the Vanguard Total International Stock ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VXUS#NASDAQ">VXUS</a>) and Vanguard FTSE Europe ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGK#NYSE">VGK</a>) have attracted $6.6 billion and $5.2 billion, respectively.
In fixed income, the Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>), the Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VCIT#NASDAQ">VCIT</a>) and the Vanguard Total International Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNDX#NASDAQ">BNDX</a>) show increased reallocation into bonds as investors rebalance and position for a changing interest rate cycle.
The inclusion of five non-U.S. equity or bond ETFs in Vanguard&#8217;s top 10 by inflows for 2025 indicates a mature investor base that is increasingly looking to diversify across regions and asset classes.
<h2 class="wp-block-heading">A Structural Advantage In The ETF Arms Race</h2>
Vanguard&#8217;s dominance also reflects structural advantages. While some rival ETFs have more than one share class, Vanguard funds exist under a patented mutual fund–based share class design, which creates more tax efficiency, a feature that has become particularly valuable for taxable accounts and long-term investors.
Meanwhile, rival issuers like BlackRock&#8217;s iShares and State Street&#8217;s SPDRs have had a checkered record in 2025. Even with advances in active ETFs and thematic strategies, a number of these products have failed to keep pace with Vanguard&#8217;s capacity to command sticky, long-duration capital.
<h2 class="wp-block-heading">Implications For Fund Management</h2>
Vanguard&#8217;s 2025 ETF flows reflect a wider, structural shift towards transforming the future of fund management: 
<ol class="wp-block-list">
<li>Fee compression is a permanent fixture.</li>
<li>Passive investing remains on the rise even as active ETFs increase in count.</li>
<li>Scale, brand credibility, and price leadership increasingly propel asset capture.</li>
</ol>
Legacy asset managers dependent on high-fee products must take away a blunt message: the market no longer compensates for complexity or exclusivity. It is paying for accessibility, transparency, and discipline.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/06/46056666/how-a-strait-of-hormuz-shock-could-ignite-a-surge-in-energy-and-defense-etfs">How A Strait Of Hormuz Shock Could Ignite A Surge In Energy And Defense ETFs</a></li>
</ul>
Photo: Shutterstock

Broad U.S. Equity ETFs

ETFs

BNDX

VCIT

VXUS

Vanguard ETFs Lead 2025 With $150 Billion Inflows, Challenging Wall Street's Old Guard

Even with the world on edge, with rising geopolitical tensions, uncertain interest rate moves and tech stocks showing some mood swings, <a href="https://www.benzinga.com/etfs">ETF investors</a> aren't running scared. They're doing something smarter: diversifying their bets.
Last week, U.S.-listed ETFs pulled in $22.7 billion, pushing 2025's total inflows to $462 billion, per Etf.com. 
Here's what makes that number interesting: the money didn't just flood into one corner of the market. It was a broad-based buying spree, with investors scooping up U.S. equities, international stocks, bonds, gold, and even crypto ETFs.
Four weeks ago, the trend showed high <a href="https://www.benzinga.com/25/05/45550710/investors-ditch-us-stocks-as-international-etfs-hit-52-week-highs-heres-whats-driving-the-portfolio-pivot">inclination toward international equity</a> amid shifting macroeconomic tides and geopolitical realignments. &nbsp;The so-called "Sell America" trade concerns,&nbsp;sparked by Moody's downgrade of America's credit rating, had investors redirecting capital from U.S. markets to opportunities abroad. But that narrative changed in a matter of weeks.
So what's behind this diversified appetite? 
<h1 class="wp-block-heading">A "Both-And" Market Mentality</h1>
This isn't a market where investors are choosing either risk or safety, they're doing both.
On one hand, funds like the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) took in a massive $14.4 billion last week alone, proof that many still believe in the long-term power of U.S. large caps.
On the other hand, ETFs tied to gold, such as SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) and the leveraged ProShares Ultra Gold ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UGL#NYSE">UGL</a>) and iShares Bitcoin Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>), also made it into the top 10 inflow list.
Translation? Investors saying, "Yes, we're bullish — but just in case…"
Also Read: <a href="https://www.benzinga.com/etfs/specialty-etfs/25/06/45939307/are-gold-etfs-really-a-hedge-during-a-geopolitical-crisis-heres-what-to-check-before-investing">Are Gold ETFs Really A Hedge During A Geopolitical Crisis? Here&#8217;s What To Check Before Investing</a>
<h1 class="wp-block-heading">Going Global, Playing Defense</h1>
More investors are eyeing international ETFs and bonds to add some global flavor and stability to their portfolios. The iShares MSCI Emerging Markets Asia ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EEMA#NASDAQ">EEMA</a>) pulled in $861 million, showing growing interest in Asian growth stories.
At the same time, safer bets like the Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>) and Vanguard Tax-Exempt Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTEB#NYSE">VTEB</a>) drew strong inflows, as investors look to cushion against potential rate shocks or market hiccups.
<h1 class="wp-block-heading">What's Fueling The Trend?</h1>
Geopolitical uncertainty: The Israel-Iran conflict and global election jitters are reminding investors that headlines can shake markets fast.
No clear Fed signal: With mixed signals from the U.S. Federal Reserve, no one wants to bet the farm on one asset class.
Tech fatigue: Even as big tech rallies, outflows from Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and Direxion Daily Semiconductor Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) suggest some profit-taking and wariness of over-concentration.
Now isn't the time to go all-in on one theme. Instead, ETF investors are layering their strategies, holding onto core U.S. equity positions, but adding gold, bonds, and emerging markets for extra protection and growth potential.
It's less "fear of missing out," and more "fear of not being prepared."
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/06/45975763/risk-on-revival-growth-themed-etfs-hit-52-week-highs-as-market-calms-down">Risk-On Revival: Growth-Themed ETFs Hit 52-Week Highs As Market Calms Down</a></li>
</ul>
Photo: Vitalii Vodolazskyi via Shutterstock

Trading Ideas

EEMA

IBIT

SOXL

VTEB

Why Smart Money Is Spreading Out: ETF Flows Signal Surge In Portfolio Diversification

As American stock exchanges celebrated a 15% bounce last month in the S&amp;P 500 and appear to shrug off April&#8217;s pullback, JPMorgan CEO Jamie Dimon turned out to be the party killer. 
Addressing JPMorgan Chase&#8217;s annual investor day, Dimon cautioned that <a href="https://www.benzinga.com/news/management/25/05/45508514/jpmorgan-ceo-jamie-dimon-warns-huge-deficits-complacent-central-banks-could-lead-to-stagflation">Wall Street is potentially sleepwalking into a minefield of threats</a>, from swelling U.S. deficits, uncompromising tariffs and geopolitical tensions.
So, in a climate where the atmosphere is strangely bright with storm clouds on the horizon, how do investors protect themselves against the whiplash of complacency being replaced with anarchy?
Try <a href="https://www.benzinga.com/etfs">these ETF plays</a>, because sometimes the best defense is a diversified offense.
<h1 class="wp-block-heading">Short-Term Treasury and Inflation-Protected ETFs</h1>
If you're in the &#8220;cautious optimism with a side of realism&#8221; camp, short-term government bond ETFs are worth a look. They offer lower interest rate risk, and with the Fed playing hard to get on rate cuts, yields are holding up nicely.
Vanguard Short-Term Treasury ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VGSH#NASDAQ">VGSH</a>): Yielding a healthy 4.18%, it's a classic go-to for those who'd rather not roll the dice.
Vanguard Short-Term Inflation-Protected Securities ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VTIP#NASDAQ">VTIP</a>): With its 2.78% yield and inherent inflation protection, it&#8217;s like having a financial raincoat on hand when the storm clouds gather.
<h1 class="wp-block-heading">Low-Beta ETFs</h1>
Dimon&#8217;s words hint that volatility may come back with a vengeance — and <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/03/44165367/how-to-ride-out-market-turbulence-with-these-5-low-beta-etfs">low-volatility or low-beta ETFs</a> are designed for just that type of turbulence. They tend to prefer stocks with benign price action and often bias towards defensive sectors.
Vanguard Total Bond Market Index Fund ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>): The fund offers broad exposure to the U.S. bond market, covering government, corporate, and mortgage-backed securities. With a low beta of 0.25, BND offers stability while still delivering a modest returns.
<h1 class="wp-block-heading">Dividend-Growth ETFs</h1>
Cash is king in uncertain times, particularly recurring, growing cash flows. Dividend-growth ETFs target firms with a long history of dividend hikes, a quality indicator in the face of economic uncertainty.
SPDR S&amp;P Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SDY#NYSE">SDY</a>): Tracks U.S. firms with more than 20 years of history of dividend growth. Yield: 2.49%.
<h1 class="wp-block-heading">What Did Dimon Say?</h1>
&#8220;We have huge deficits; we have what I consider almost complacent central banks,&#8221; he said, castigating with practiced hawkishness. &#8220;You all think they can manage all this. I don't think they can.&#8221;
<a href="https://www.benzinga.com/topic/jamie-dimon">Dimon&#8217;s unsparing macroeconomic assessment </a>also put a spotlight on inflation and stagflation risks, and warned S&amp;P 500 earnings estimates to soon drop from 12% to flatline levels. If that happens, valuations could follow.
His comments are adding to a chorus of concern. Citigroup CEO Jane Fraser also voiced uncertainty recently in a blog <a href="https://www.citigroup.com/global/news/perspective/2025/signals-through-the-noise-jane-fraser?linkId=821338777">post</a>, and Walmart CFO John David Rainey heralded oncoming price increases due to increasing tariffs, potentially in the form of &#8220;double-digit&#8221; rises.
If consumer leviathans are sealing up the hatches, investors might consider rethinking those champagne-stock valuations.
<h1 class="wp-block-heading">The Bottom Line</h1>
Dimon&#8217;s fears, supported by weakening earnings forecasts, sticky tariffs and geopolitical uncertainty, are not to be underestimated.
ETF investors should note that this isn't about fleeing the market, but rather about suiting up with armor tailored for the battlefield ahead. Whether it's the cushion of short-term Treasuries, the stability of low-volatility plays or the reliability of dividend growers, these ETF strategies offer ballast when Wall Street's mood shifts from carefree to cautious.
Because when Dimon raises an eyebrow, it&#8217;s rarely without reason.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/05/45548460/cash-flow-kings-how-jepi-and-jepq-are-turning-market-jitters-into-steady-income">Cash Flow Kings: How JEPI And JEPQ Are Turning Market Jitters Into Steady Income</a></li>
</ul>
Photo: Qoncept via Shutterstock

VGSH

VTIP

Warning From Wall Street: 4 Defensive ETFs To Watch After Jamie Dimon's Alarm

Dividend stocks are gaining ground as investors scramble to safeguard their portfolios amid the ongoing US-China trade war. Jared Hoff, a senior portfolio manager at Federated Hermes, said while talking to <a href="https://www.wsj.com/finance/stocks/dividend-stocks-market-swings-strategy-d8301d88">The Wall Street Journal</a> that dividend stocks are seeing a surge in demand, reversing the trend of the past couple of years when demand for risk-averse investments was low.
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<li>Can you guess how many retire with a $5,000,000 nest egg? <a href="https://www.benzinga.com/money/5mil-nest-egg-adv">The percentage may shock you</a>.</li>
</ul>
A few days ago, a dividend investor <a href="https://www.reddit.com/r/dividends/comments/1k2tn99/51_yo_three_years_away_any_tweaks/">shared</a> his income report and holdings on r/Dividends — a community of income investors with over 700,000 followers. The portfolio details shared by the investor showed his monthly dividend income was roughly $4,973. The investor said he had about $1.2 million in cash equivalents, like certificates of deposit and money market funds, with paid-off house and cars.
The investor, who plans to retire in three years, said he had &#8220;ignored&#8221; dividend stocks until recently but began shifting into income-generating investments following the recent market pullback.
"I don't want to lose the growth aspect of my portfolio as I want to see it continue to grow," he wrote. "We plan to use the nearly $5000 monthly dividend income as of today and reinvest the dividends for the next 8.5 years."
Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. <a href="https://www.benzinga.com/money/masterworks">See which asset class has outpaced the S&amp;P 500 (1995-2024) – and with near-zero correlation.</a>
The investor said his portfolio was down about 12.5% in 2025 as of the time of his post. He sold tech equities where he had already secured "huge" gains to pile into dividend stocks.
"We have five kids aged 17-23 and the goal was to create generational wealth for them and their future families," he added.
JPMorgan Nasdaq Equity Premium Income ETF
JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JEPQ#NASDAQ">JEPQ</a>) is a high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates extra income by selling call options.
NEOS S&amp;P 500 High Income ETF&nbsp;
The NEOS S&amp;P 500 High Income ETF (CBOE: SPYI) is a high-yield covered call ETF that pays monthly dividend income. It invests in some of the top S&amp;P 500 companies and generates extra income by selling call options on stocks, generating extra premium income for shareholders. SPYI has a distribution rate of more than 12%.
Vanguard Total Bond Market Index Fund ETF
Vanguard Total Bond Market Index Fund ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>) was among the top bond ETFs in the portfolio. The fund provides exposure to the investment-grade U.S. dollar-denominated bond market and pays monthly.
See Also: Hasbro, MGM, and Skechers trust this AI marketing firm — <a href="https://www.benzinga.com/money/rad-intel">invest pre-IPO from $0.60 per share now</a>.
Broadcom
Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) has a dividend yield of about 1.2%. The stock is down 17% this year amid broader market volatility and tariffs on semiconductors. Earlier this month, Oppenheimer called Broadcom one of its <a href="https://seekingalpha.com/news/4431241-nvidia-broadcom-marvell-among-oppenheimers-top-chip-picks-ahead-of-earnings-season">top picks</a> in the semiconductor space.
JPMorgan Chase
JPMorgan Chase (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) has a dividend yield of 2.3%. The banking giant's shares are up 8% over the past six months. Recently, JPMorgan <a href="https://seekingalpha.com/news/4430379-jpmorgan-non-gaap-eps-of-4_91-beats-by-0_27-revenue-of-46b-beats-by-1_86b">reported</a> first-quarter earnings that beat Wall Street estimates. Revenue rose 9.7% year over year in the period.
Home Depot
Home Depot (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) has a dividend yield of 2.5%. The stock is down 8% this year. The company's CEO, Edward Decker, was among the CEOs of major retailers who <a href="https://www.cnbc.com/2025/04/21/trump-tariffs-walmart-home-depot-lowes-target.html">met</a> with President Donald Trump earlier this month to discuss the impact of tariffs on their companies.
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<li>Inspired by Uber and Airbnb &#8211; Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets &#8211; <a href="https://www.benzinga.com/money/mode-mobile-2">with $1,000 you can invest at just $0.26/share!</a></li>
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Image: Shutterstock

Personal Finance

AVGO

JEPQ

SPYI

51-Year-Old Making $4,970 a Month In Dividends Shares His Top 6 Stocks, Aims To 'Create Generational Wealth For Kids And Their Families'

The chief economic adviser to President Donald Trump, Stephen Miran, reportedly struggled to reassure major bond and hedge fund investors during a meeting last week.
What Happened: Miran, who also heads the Council of Economic Advisers, met with representatives from top hedge funds and other significant investors at the White House on Friday. The meeting was organized amid a period of heightened market instability caused by Trump&#8217;s tariff policies, according to a <a href="https://www.ft.com/content/a815323b-ae2b-4586-aec2-39dec35726f0">Financial Times</a> report. The meeting, arranged by Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), included representatives from hedge funds Balyasny, Tudor and Kenneth Griffin&#8216;s Citadel, as well as asset managers PGIM and BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>).
Several attendees expressed dissatisfaction with the meeting, describing Miran&#8217;s remarks on tariffs and markets as unclear or insufficient. Some even suggested that Miran was not up to the task. Some called him "incoherent"  while some said, he was &#8220;Out of his depth&#8221;. 
"When you're with an audience that knows a lot, the talking points are taken apart pretty quickly,&#8221; a source told Financial Times. 
However, one individual familiar with the meeting expressed optimism about the administration&#8217;s approach to deregulation and tax cuts. 
Earlier this month in a speech at the Hudson Institute, Miran proposed that countries either accept U.S. tariffs on their exports without retaliating or "write cheques to Treasury that help us finance global public goods" as potential solutions.
SEE ALSO: <a href="https://benzinga.com/news/25/04/45084963/joe-rogan-says-people-dont-realize-how-quickly-things-can-collapse-just-how-los-angeles-fell-apart-the-us-co" target="_blank" rel="noreferrer noopener">Joe Rogan Says People Don&#8217;t Realize How Quickly Things Can Collapse: &#8216;Just How Los Angeles Fell Apart The US Could Fall Apart Too&#8217;</a>
Why It Matters: The Trump administration&#8217;s policies have led to significant fluctuations in U.S. equity and debt markets. U.S. government bonds experienced a sharp sell-off following the president&#8217;s announcement of steep tariffs on April 2.
Recently, hedge fund manager Spencer Hakimian <a href="https://www.benzinga.com/markets/25/04/45031287/us-companies-earn-6x-more-in-china-than-they-export-heres-why-blowing-up-global-trade-would-be-economic-suicidesays-leading-fund-manager">criticized the ongoing</a> trade and tariff war, describing it as unprecedentedly &#8220;stupid&#8221;. He highlighted that S&amp;P 500 companies generate nearly $1.17 trillion in annual revenue from China. Meanwhile, some investors have managed to <a href="https://www.benzinga.com/25/04/44893887/greenlight-capitals-gold-investments-yield-high-returns-amidst-market-downturn">find success</a> amid the market downturn. Billionaire investor David Einhorn&#8216;s hedge fund, Greenlight Capital, reported an 8.2% return in the first quarter of 2025, significantly outperforming the S&amp;P 500&#8217;s loss of over 4% during the same period.
However, according to most investors, declining long-term bond prices and a weakening dollar indicate that the U.S.&#8217;s status as a safe haven in global markets is facing pressure.
Vanguard Total Bond Market Index Fund ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>) climbed 2.24% year-to-date, while iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rose 3% during the same period. 
<ul>
<li>READ MORE: <a href="https://benzinga.com/news/25/04/45090231/elon-musk-says-will-come-as-a-surprise-to-most-as-chinas-economy-surpasses-us-and-eu-amid-rising-tariffs-and" target="_blank" rel="noreferrer noopener">Elon Musk Says Will Come As A &#8216;Surprise To Most&#8217; As China&#8217;s Economy Surpasses US And EU Amid Rising Tariffs And Growing Recession Fears</a></li>
</ul>
Image via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

News

Markets

iShares Trust Barclays 20+ Year Treasury Bond Fund

Key Trump Adviser's Attempt To Reassure Investors Amid Market Turmoil Draws Criticism As Some Say He Was 'Out Of His Depth': 'When You're With An Audience That Knows A Lot...'

When stock market volatility erupts — as it has during global trade tensions, changing Fed policy, and fresh inflationary pressures — the bond market is meant to act as a financial lifeboat. And <a href="https://www.benzinga.com/markets/bonds">recently, it ha</a>s. 
The biggest <a href="https://www.benzinga.com/etfs">Treasury bond ETFs</a>, such as the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>), retained their footing and moved higher, reminding investors why bonds remain a cornerstone of portfolio stability.
Also Read: <a href="https://www.benzinga.com/etfs/specialty-etfs/25/04/44772011/gold-miners-go-parabolic-gdx-hits-2012-highs-newmont-soars-9">Gold Miners Go Parabolic: GDX Hits 2012 Highs, Newmont Soars 9%</a>
But it&#8217;s not only old-school buy-and-hold passive strategies that are in favor. Investors increasingly gravitate toward actively managed bond ETFs, wagering that clever managers can ride the rate rollercoaster more effectively than a fixed index.
While active stock pickers again struggled, active bond managers quietly won, writes a <a href="https://www.spglobal.com/spdji/en/documents/spiva/spiva-us-year-end-2024.pdf">report </a>by S&amp;P Global&#8217;s SPIVA Scorecard. It discovered that most active bond funds beat their indexed counterparts in 11 of 16 fixed-income categories last year — a striking reversal of the long-standing narrative that active management doesn&#8217;t pay.
<h2 class="wp-block-heading">Treasury ETFs Take Center Stage</h2>
During the latest round of market upheaval, Treasury bond ETFs attracted billions of dollars in flows as investors flocked to find shelter from the tempest. According to Morningstar:
<ul>
<li>The Bronze-rated iShares 7-10 Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IEF#NASDAQ">IEF</a>) attracted $2.6 billion between April 3 and April 7</li>
<li>The shorter-duration SPDR Portfolio Intermediate Term Treasury ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPTI#NYSE">SPTI</a>) attracted $1.6 billion. </li>
</ul>
Investors preferred low credit-risk vehicles but were still on the fence about the amount of interest rate risk they were willing to endure.
The Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>) and the iShares Core US Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>) were also in hot demand. Unlike past bear markets, however, these passive giants were matched by flows into actively managed &#8220;enhanced core&#8221; bond funds — strategies that try to beat the likes of AGG, <a href="https://www.cnbc.com/2025/04/07/bonds-are-back-in-market-crash-what-investors-are-buying-changed.html">according </a>to CNBC. Active enhanced core funds attracted five times more money than their passive counterparts in the core bond space this year, ETFaction says.
Also Read: <a href="https://www.benzinga.com/etfs/specialty-etfs/25/04/44767888/how-intels-ceo-pick-could-jolt-chip-stocks-and-etfs">How Intel&#8217;s CEO Pick Could Jolt Chip Stocks And ETFs</a>
<h2 class="wp-block-heading">The Emergence Of Ultrashort ETFs</h2>
Ultrashort bond ETFs were also front and center, serving as cash substitutes during the mayhem. 
According to Morningstar, the SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BIL#NYSE">BIL</a>) received $3.5 billion in inflows from April 3 to 7. The iShares 0-3 Month Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOV#NYSE">SGOV</a>) took in another $1.1 billion. 
With modest yields and little risk, these funds are now the parking lots of choice for investors who want to hold capital without locking it up for a longer duration.
Still, not all parts of the ultrashort segment thrived. Riskier plays like the Janus Henderson AAA CLO ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JAAA#NYSE">JAAA</a>) — which had tripled in size in just 12 months — saw a reversal of fortune, bleeding over $1 billion recently as investors moved away from higher credit risk, per Morningstar report.
<h2 class="wp-block-heading">What&#8217;s Next?</h2>
The Federal Reserve continues to fight inflation, while policy confusion hurts the economic outlook. Yet, bond market forces are in transition. Rather than simply going into hiding — they&#8217;re getting more subtle in their approach. Passive ETFs remain in the picture, but the increasing demand for actively managed Treasury and core bond funds represents a new fixed-income era.
As Treasury ETFs provide a sound hedge and active bond managers are justifying their role, the new bond market playbook may not be so passive after all.
Read Next: 
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<li><a href="https://www.benzinga.com/general/health-care/25/04/44746774/smart-investors-are-watching-these-3-etfs-after-surprise-jobs-data-beat">Smart Investors Are Watching These 3 ETFs After Surprise Jobs Data Beat</a></li>
</ul>
Image: Shutterstock

Bonds

Specialty ETFs

Treasuries

iShares Trust Barclays 7-10 Year Treasury Bond Fund

JAAA

SGOV

SPTI

From Boring To Booming: How Treasury ETFs Are Beating The Bear

Stock and ETF investors, take note. <a href="https://www.benzinga.com/topic/peter-schiff">Peter Schiff </a>sees trouble ahead and he's not mincing words. The renowned investor warns that the government and financial media are &#8220;making the same mistake again&#8221; as they did before the 2008 Global Financial Crisis, Schiff wrote <a href="https://x.com/PeterSchiff/status/1906690596640600283">on</a> X.
The culprit this time? A toxic mix of tariffs, rising interest rates and misguided Federal Reserve policies that could unleash an economic firestorm.
<h2 class="wp-block-heading">Tariffs: A Recipe For Inflation, Rate Hikes</h2>
Schiff argues that tariffs won't just impact trade &#8211; they'll send shockwaves through the economy. &#8220;Tariffs mean fewer goods will come into the country, and fewer dollars will go out. More money chasing fewer goods means higher domestic prices. This is an economic certainty,&#8221; he said.
For investors, that translates to higher inflation, a weaker consumer and pressure on corporate margins.
But it doesn't stop there. &#8220;Lower trade deficits will result in fewer dollars being recycled into U.S. bonds, sending long-term interest rates higher.&#8221; With higher rates, borrowing costs rise for businesses and consumers alike, slowing growth and putting pressure on stocks—especially high-flying tech names.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/03/44309742/recession-watch-small-caps-sound-the-alarm-but-credit-markets-shrug">Recession Watch: Small Caps Sound The Alarm, But Credit Markets Shrug</a>
<h2 class="wp-block-heading">Fed To The Rescue? Not So Fast</h2>
Schiff sees the Federal Reserve making the wrong move when the economy starts showing signs of strain. &#8220;The Fed will respond to this &#8216;unexpected&#8217; economic weakness with rate cuts, ignoring the surge in consumer prices as a transitory effect of tariffs.&#8221; 
Translation? Inflation won't just persist &#8211; it could spiral. And if the Fed resorts to quantitative easing (QE) again, Schiff warns, &#8220;throwing gasoline on an already burning inflation fire&#8221; could create a crisis far worse than 1970s-style stagflation.
<h2 class="wp-block-heading">What It Means For Investors</h2>
If Schiff's prediction plays out, stock investors should brace for turbulence. High-growth and rate-sensitive sectors like technology, as tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), could face pressure. On the other hand, inflation-resistant assets &#8211; such as:
Commodities, as tracked by the Invesco DB Commodity Index Tracking Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBC#NYSE">DBC</a>); Gold, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), and select energy stocks &#8211; may become safe havens.
Bond investors and those invested in popular Treasury tracking ETFs such as iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>), the Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>) and the iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>) beware: rising long-term rates could send Treasury prices tumbling.
Meanwhile, a &#8220;weaker dollar and larger budget deficits&#8221; could mean international ETFs and hard assets outperform U.S. equities.
<h2 class="wp-block-heading">Is This The Next 2008?</h2>
Schiff isn't predicting a simple market correction &#8211; he's warning of something much worse. &#8220;This will not be 1970s-style stagflation. It will be something much worse.&#8221; 
If history is about to repeat itself, as he suggests, investors who ignore the warning signs could be caught in the fire. The question is: Are you ready?
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/03/44456554/trade-wars-fed-moves-and-a-40-recession-risk-is-your-portfolio-ready">Trade Wars, Fed Moves And A 40% Recession Risk &#8211; Is Your Portfolio Ready?</a></li>
</ul>
Photo: Shutterstock

Analyst Color

Long Ideas

Macro Economic Events

Economics

Federal Reserve

Analyst Ratings

PowerShares DBmmodity Index Optimum Yield Diversified Fund

Peter Schiff Sounds The Alarm: 'Same Mistake Again' Could Trigger Economic Firestorm

In today&#8217;s fast-paced world, many want to build wealth and achieve long-term financial <a href="https://in.benzinga.com/personal-finance/25/03/44146342/charlie-munger-said-he-was-passionate-about-getting-rich-but-not-because-i-wanted-ferraris-i-wanted-the-independence">independence</a>. Countless people dream of financially securing their future, and for many, that path is through investments in the stock market.
Yet, the path to financial independence is rarely straightforward, especially for those starting to invest later in life and have little to no knowledge of the <a href="https://in.benzinga.com/personal-finance/25/03/44287485/peter-lynch-said-theres-always-something-to-worry-about-but-success-in-the-stock-market-depends-on-your-stomach-not-the-brain">stock market</a>, as is the case of one Reddit user.
The individual, a 38-year-old, shared his concerns in a Reddit community of investors. He said that he recently came across a substantial amount of money–$750,000 in cash–but has no other assets such as a house, no pension, and no investments.
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The poster is focused on long-term growth and is seeking advice on how to invest his newly acquired money wisely. He is also cautious about the current market volatility and is wondering whether he should wait a few weeks before he starts investing, whether to go for a dollar-cost average approach and if other options beyond ETFs would suit his goals.
&#8220;I&#8217;m 38 years old with newly acquired $750,000 in cash. How should I invest? My goal is long-term growth. Should I wait a few more weeks? When [dollar-cost averaging]–what amounts and frequency should I shoot for? And advice for investments beyond ETFs given the volatility at the moment?&#8221; he asked.
Trending: Can you guess how many retire with a $5,000,000 nest egg? <a href="https://www.benzinga.com/money/5mil-nest-egg-adv">The percentage may shock you</a>.
The Reddit community has responded to the 38-year-old&#8217;s post with insights and advice, so let&#8217;s dive deeper into the comments to find out what the community has suggested.
<h2 class="wp-block-heading">How to Invest $750,000? Reddit Community Shares Insights</h2>
Use Dollar-Cost Averaging and Invest in ETFs
One of the most common suggestions was to use dollar-cost averaging to invest in ETFs, especially those tracking global and U.S. markets.
&#8220;Definitely [dollar-cost averaging] over a year or two. You should buy world ETFs, U.S. ETFs, and 20% bonds,&#8221; a comment says.
One Redditor suggested specific ETFs he thinks would grow the poster&#8217;s money in the long run.
&#8220;[Vanguard S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voo#NYSE">VOO</a>)] or [Vanguard S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voog#NYSE">VOOG</a>)], [Vanguard Information Technology ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vgt#NYSE">VGT</a>)] or [Technology Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlk#NYSE">XLK</a>)], [Vanguard Total World Stock ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vt#NYSE">VT</a>)] or [Vanguard Total International Stock ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vxus#NASDAQ">VXUS</a>)],&#8221; he said.
A commenter pointed out he has a more structured approach to dollar-cost averaging with a focus on a few particular ETFs.
&#8220;Looking forward to the responses as I'm currently sitting in [iShares 0-3 Month Treasury Bond ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sgov#NYSE">SGOV</a>)]. My plan is to ladder into [iShares Bitcoin Trust ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ibit#NYSE">IBIT</a>)], VT, and VOO. I will do bi-weekly buys starting in June,&#8221; he wrote.
A Reddit user suggested a mix of global equity exposure and bonds for a diversified portfolio.
&#8220;VT 70%, [Vanguard Total Bond Market ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bnd#NASDAQ">BND</a>)] 30%. Increase BND 10% for each 10 years of your age from now on. Good luck to you,&#8221; the user said.
&#8220;VT, [Schwab US Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>)], [iShares Core Dividend Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgro#NYSE">DGRO</a>)], [Invesco NASDAQ 100 ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqqm#NASDAQ">QQQM</a>)], [JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ]. SGOV or [Vanguard Treasury Money Market Fund (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vusxx#NASDAQ">VUSXX</a>)] for other opportunities,&#8221; a comment reads.
One user mentioned a global stock market ETF but agreed that VXUS is also a good choice.
&#8220;I like [SPDR Portfolio MSCI Global Stock Market ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spgm#NYSE">SPGM</a>)], but VXUS is good as well,&#8221; a comment reads.
See Also: If there was a new fund backed by Jeff Bezos offering a <a href="https://www.benzinga.com/money/arrived-private-credit-fund">7-9% target yield with monthly dividends would you invest in it</a>?
Don&#8217;t Time the Market
Many Redditors cautioned against market timing, with some even predicting what they think the new investor will do after investing.
&#8220;Imagine hoarding $750,000 during a 15-year bull market, to only now considering investing it. The market is guaranteed to drop 20% starting the day after the OP invests it. And someone new to investing will get emotional about the 20% drop and sell at the bottom, where it will immediately go on a 5-year bull run again,&#8221; a commenter wrote.
&#8220;Man, you got $750,000 and you didn't put a cent of that into the S&amp;P 500 over the last 5 years. I can see the S&amp;P 500 being very choppy over the next four years with Trump. If I were honestly you, I would keep that money in a savings bank account. And invest new money from my wages into the S&amp;P 500, bonds ETF, and income ETFs,&#8221; another comment says.
Replying to the above user, a Redditor reminded him that the poster didn&#8217;t have the money for long.
&#8220;Sounds like he just came into the $750,000 recently,&#8221; he said.
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<li>Have $200K saved?<a href="https://www.benzinga.com/money/have-200k-saved-heres-how-to-turn-it-into-lasting-wealth"> Here's how to turn it into lasting wealth</a></li>
<li>BlackRock is calling 2025 the year of alternative assets. <a href="https://www.benzinga.com/money/masterworks">One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.</a></li>
</ul>

DGRO

QQQM

SCHD

SPGM

VOOG

VUSXX

$750K In Cash But No Assets Or Pension – 38-Year-Old Asks: 'My Goal Is Long-Term Growth. How Should I Invest?' Reddit Is Divided

The stock market has been under pressure due to a combination of economic slowdown fears, trade war tensions, <a href="https://www.benzinga.com/news/econ-s/25/02/44041803/federal-reserves-preferred-inflation-gauge-marks-first-slowdown-in-4-months">and inflationary concerns</a>. 
Ongoing <a href="https://www.benzinga.com/topic/tariffs">tariff escalations between major economies</a> have disrupted global supply chains, while rising costs and slowing business activity have led to market uncertainty. Investors looking to protect their portfolios from excessive volatility may find <a href="https://www.benzinga.com/topic/etf">low-beta ETFs</a> a practical choice.
Investing in low-beta ETFs can be a smart strategy for those looking to stay in the market while minimizing risk. Beta is a measure of an asset's volatility relative to the market. A beta of less than 1 means the asset is less volatile than the broader market, providing stability during downturns. Here are five low-beta ETFs that can offer protection in uncertain times.
Also Read: <a href="https://www.benzinga.com/economics/macro-economic-events/25/03/44108913/tariffs-trump-tumult-how-to-trade-this-volatility-vix-surge">Tariffs, Trump, Tumult: How To Trade The Volatility Surge</a>
Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>)
<ul>
<li>Beta: 0.20, YTD Price Return: 3%</li>
<li>This ETF provides broad exposure to the U.S. bond market, covering government, corporate, and mortgage-backed securities. Bonds are generally considered safer than stocks, and with a low beta of 0.20, BND offers stability while still delivering a modest return. It is an excellent option for investors seeking income and capital preservation.</li>
</ul>
SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)
<ul>
<li>Beta: 0.19 YTD Price Return: 10%</li>
<li>Gold is often seen as a safe-haven asset during market downturns, and the SPDR Gold Shares ETF provides direct exposure to the precious metal. With a low beta of 0.19, GLD tends to hold its value or even appreciate when equities struggle. This makes it an ideal hedge against economic and geopolitical uncertainties.</li>
</ul>
Vanguard Total International Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNDX#NASDAQ">BNDX</a>)
<ul>
<li>Beta: 0.18 &#x7C; YTD Return: 1%</li>
<li>For investors looking to diversify globally, the Vanguard Total International Bond ETF offers exposure to investment-grade bonds outside the U.S. With a beta of just 0.18, this ETF minimizes risk while providing stability through international fixed-income securities. It's a solid choice for those seeking to balance their portfolio with low-volatility assets.</li>
</ul>
Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VCIT#NASDAQ">VCIT</a>)
<ul>
<li>Beta: 0.34 YTD Price Return: 2.8%</li>
<li>VCIT focuses on intermediate-term corporate bonds, offering a mix of safety and better yields than government bonds. Its beta of 0.34 is slightly higher than the others on this list, but being below 1, it still provides lower volatility compared to equity investments. This ETF is suitable for those looking for relatively stable income with moderate risk.</li>
</ul>
iShares National Muni Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MUB#NYSE">MUB</a>)
<ul>
<li>Beta: 0.18 YTD Price Return: 1%</li>
<li>Municipal bonds (munis) are known for their tax advantages and stability. The iShares National Muni Bond ETF invests in a diversified portfolio of U.S. municipal bonds, offering a low beta of 0.18. It is a great option for investors who want low-tax income with minimal exposure to market swings.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/03/44085268/market-mayhem-5-etfs-that-soared-amid-volatility-last-week">Market Mayhem: 5 ETFs That Soared Amid Volatility Last Week</a>
<h2 class="wp-block-heading">Why Consider Low-Beta ETFs?</h2>
The stock market has been highly volatile in recent times, driven by trade war tensions and economic slowdown fears. The ongoing <a href="https://www.benzinga.com/news/25/03/44116300/how-companies-are-tweaking-products-to-cut-trumps-tariff-costs">tariff escalations</a> between the U.S., Canada, Mexico, and China have led to price hikes on various goods and have disrupted global supply chains. This turbulence has made it challenging for investors to navigate the market.
Low-beta ETFs exhibit greater stability than market-sensitive assets and tend to lose less when the market declines. Though they offer lower returns compared to high-beta stocks, their defensive nature makes them a reliable choice during economic uncertainty.
Read Next: 
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<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/03/44153070/auto-etfs-surge-on-trumps-tariff-reprieve-but-uncertainty-looms">Auto ETFs Surge On Trump&#8217;s Tariff Reprieve, But Uncertainty Looms</a></li>
</ul>
Image: Shutterstock

iShares S&P National AMT-Free Municipal Bond Fund

How To Ride Out Market Turbulence With These 5 Low-Beta ETFs

Vanguard has once again broadened its fixed-income offerings, rolling out a pair of new<a href="https://www.benzinga.com/etfs"> Treasury-focused ETFs</a> on the Nasdaq. The Vanguard Ultra-Short Treasury ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VGUS#NASDAQ">VGUS</a>) and the Vanguard 0-3 Month Treasury Bill ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VBIL#NASDAQ">VBIL</a>) are low-cost index ETFs that aim to manage liquidity and short-term fixed-income exposure while keeping costs minimal.
VGUS will track the Bloomberg Short Treasury Index, which includes U.S. Treasury securities maturing in under a year. Meanwhile, VBIL will follow the Bloomberg US. Treasury Bills 0-3 Months Index, providing exposure to the shortest-maturity Treasury bills available. Both ETFs have an estimated expense ratio of just 0.07%, reinforcing Vanguard's commitment to cost-effective investing.
Also Read: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/02/43605412/as-trade-war-heats-up-these-etfs-offer-a-safe-harbor-for-investors">As Trade War Heats Up, These ETFs Offer A Safe Harbor For Investors</a>
"The goal is to provide investors with a more diverse product range and complement our existing lineup of active and passive funds," <a href="https://www.prnewswire.com/news-releases/vanguard-introduces-new-etfs-to-meet-investors-short-term-liquidity-needs-302373595.html">said </a>Sara Devereux, Global Head of Vanguard Fixed Income Group.
With short durations and low volatility, VGUS and VBIL aim to bridge the gap between money market funds and ultra-short-term bond funds. Devereux touts the new funds as "valuable tools for advisors and investors to build more precise and flexible portfolios." 
Vanguard is already a giant in the ETF space, with more than $2.5 trillion in assets under management across nearly 90 ETFs. Fixed-income products make up a significant portion of that, with 21 other bond ETFs, including the $123.7 billion Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>). 
The company has long been a leader in passive fixed-income investing, dating back to the launch of the first bond index fund in 1986.
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Photo: Shutterstock

New ETFs

VBIL

VGUS

New Treasury ETFs Target Liquidity As Vanguard Expands Fixed-Income Lineup

The Federal Reserve indicated a more tempered approach to <a href="https://www.benzinga.com/25/01/42886101/investors-should-expect-no-rate-cuts-in-q1-2025-after-federal-reserves-december-minutes-release-strategist-says">interest rate cuts in 2025</a>.
That&#8217;s according to minutes from the Fed&#8217;s December meeting, which were released on Wednesday, Jan. 8. 
Investor interest shifted toward treasury bonds, as the 10-year yield briefly touched 4.73% on Wednesday, amid resurfacing inflation fears and anticipation around potential tariffs and tax policies. 
Fixed-income exchange-traded funds (ETFs) can help investors get exposure to bonds. This is thanks to the stability and predictable income opportunity amid equity market volatility that they hold.
Here are three standout ETFs poised to benefit:
<ul>
<li>iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQD#NYSE">LQD</a>) offers diversified exposure to investment-grade corporate bonds, which are less likely to default during economic uncertainty. The ETF boasts a weighted average maturity of 12.94 years but includes bonds with varying maturities to balance risk. Its 30-day SEC yield is 5.4%, and its expense ratio is 0.14%, making it a cost-effective option.</li>
</ul>
<ul>
<li>Vanguard Short-Term Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSV#NYSE">BSV</a>) is designed for stability and focuses on short-duration U.S. Treasury and investment-grade corporate bonds, with an average maturity of just 2.8 years. Music to the ears for risk-averse investors looking to shield themselves from rate volatility. The fund&#8217;s 30-day SEC yield is approximately 4.4%, with minimal sensitivity to interest rate changes. A low expense ratio of 0.04% makes it even more attractive.</li>
</ul>
<ul>
<li>Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>) offers comprehensive exposure to the entire U.S. bond market, including Treasuries, mortgage-backed securities, and investment-grade corporate bonds. The ETF's 30-day SEC yield stands at 4.55%, providing a steady income stream. An expense ratio of 0.03% is another point to note. Additionally, the ETF's liquidity and resilience during past crises, such as the 2020 pandemic sell-off, makes it a reliable long-term investment choice.</li>
</ul>
<h3 class="wp-block-heading">Why Bond Funds?</h3>
The Fed's cautious message supports a longer-term case for bond ETFs. 
Short-duration bond ETFs are less sensitive to rate fluctuations and can offer better returns than cash or savings accounts while limiting interest rate risk.
Similarly, investment-grade corporate bond ETFs are a sweet spot for yield-seeking investors. These ETFs balance risk and reward by offering exposure to highly rated corporate debt that typically performs well in uncertain economic conditions.
These apart, ultra-short bond ETFs like the iShares 0-3 Month Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOV#NYSE">SGOV</a>) could also gain traction as cash alternatives.
See Next:
<ul>
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/01/42895976/china-focused-etfs-face-uncertainty-as-us-blacklists-tencent-catl">China-Focused ETFs Face Uncertainty As US Blacklists Tencent, CATL</a></li>
</ul>
Photo via Shutterstock

Fed's Cautious Rate Cut Approach Boosts Appeal Of These 3 ETFs

The Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) has shattered records, crossing $100 billion in annual inflows this year, a historic high for any ETF over the same period. 
Data from ETF.com shows that the fund witnessed $101.07 billion in fresh money from investors, more than the combined inflows of its two closest competitors: iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) with $59.2 billion and SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) with just $22.9 billion.&nbsp;
In the multi-trillion-dollar exchange-traded fund industry, this trend is sparking debate over whether SPY, the world's largest ETF, is now on the brink of losing its long-standing crown.
<h3 class="wp-block-heading">$VOO Poised To Become The World&#8217;s Largest ETF Next Year </h3>
Despite SPY still holding the title of the world's largest ETF, with $620 billion in assets under management (AUM), the gap between it and VOO — currently at $579 billion — has narrowed to $41 billion.
&#8220;That means that there is a very real possibility that VOO overtakes SPY as the world's largest ETF as soon as next year,&#8221; commented Sumit Roy, senior analyst at ETF.com. 
&#8220;But even if that happens, SPY's slide down the ETF leaderboard might not stop there. IVV is also nipping at its heels, with $565 billion in AUM,&#8221; he added. 
<h3 class="wp-block-heading">World&#8217;s 10 Largest ETFs by AUM</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>AUM ($ bn)</th>
<th>Expense ratio</th>
</tr>
</thead>
<tbody>
<tr>
<td>SPDR S&amp;P 500 ETF TRUST</td>
<td>620.26</td>
<td>0.09%</td>
</tr>
<tr>
<td>Vanguard S&amp;P 500 ETF</td>
<td>579.35</td>
<td>0.03%</td>
</tr>
<tr>
<td>iShares Core S&amp;P 500 ETF</td>
<td>559.64 </td>
<td>0.03%</td>
</tr>
<tr>
<td>Vanguard Total Stock Market (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>)</td>
<td>460.11</td>
<td>0.03%</td>
</tr>
<tr>
<td>Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td>
<td>310.27 </td>
<td>0.20%</td>
</tr>
<tr>
<td>Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>)</td>
<td>151.13 </td>
<td>0.04%</td>
</tr>
<tr>
<td>Vanguard FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>)</td>
<td>135.42</td>
<td>0.06%</td>
</tr>
<tr>
<td>Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>)</td>
<td>133.31</td>
<td>0.04%</td>
</tr>
<tr>
<td>Vanguard Total Bond Market (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BND#NYSE">BND</a>)</td>
<td>119.17 </td>
<td>0.03%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: ETF.com</figcaption></figure>
<h3 class="wp-block-heading">Expense Ratio: A Critical Factor For VOO&#8217;s Institutional Inflows</h3>
A key driver of VOO's success is its rock-bottom expense ratio of 0.03%, less than a third of SPY's 0.0945%. 
These differences have significant implications, especially for institutional investors managing billions.
A retail investor putting $5,000 into VOO at the start of the year would pay only $1.50 in annual expenses, while the same investment in SPY would cost $4.73 – basically an irrelevant difference. 
In sharp contrast, an institutional investor allocating $5 billion to VOO would pay just $1.5 million in fees, compared to $4.73 million with SPY—a staggering $3.23 million difference.
This simple example may explain that expense ratio differences are a huge driver of wholesale <a href="https://www.benzinga.com/etfs">investor flows into ETFs</a>.
Read Now:
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<li><a href="https://www.benzinga.com/24/11/42148340/black-friday-cyber-monday-deals-on-wall-street-why-buying-walmart-or-amazon-before-the-holidays-might-backfire">Why Walmart, Amazon Stock Could Stumble This Holiday Season</a></li>
</ul>
Image:

Equities

Large Cap

Vanguard's S&P 500 ETF Hits $100 Billion Inflows In 2024: Is SPY's Crown At Risk?

The explosive <a href="https://www.benzinga.com/etfs">growth of ETFs</a> is reshaping the financial landscape, with assets under management now nearing the $15 trillion mark. 
In a recent analysis, JPMorgan strategist Nikolaos Panigirtzoglou delves into the implications of this seismic shift, spotlighting how ETFs are redefining investor behavior, liquidity patterns, and even market risks. Here are his top 10 takeaways that every investor should know.
1. Retail Sentiment Is Driving Volatility Panigirtzoglou notes that the growing dominance of ETFs has made retail investors more influential in driving market sentiment. Unlike institutional investors, retail traders tend to have shorter time horizons, leading to sudden, amplified shifts in market trends when sentiment swings.
2. Longer Rallies, Sharper Corrections The analyst highlights how ETFs encourage momentum-driven markets, fueling prolonged rallies during bullish periods. However, during market reversals, the absence of active management safeguards can result in sharper corrections and increased volatility.
Read Also: <a href="https://www.benzinga.com/24/11/42097545/feds-bowman-warns-on-inflation-risks-signals-neutral-rate-may-be-closer">Fed&#8217;s Bowman Warns On Inflation, Says Neutral Interest Rates May Be Closer &#8216;Than We Currently Think&#8217;</a>
3. Big Money Flows Into Large-Caps Most ETFs are market-cap-weighted, which means they funnel disproportionate capital into large-cap stocks. Panigirtzoglou warns this trend could inflate valuations for mega-caps while crowding out smaller companies, risking capital misallocation.
Companies such as Nvidia Corp, Apple Inc, and Microsoft Corp each currently command over $3 trillion in market cap on the U.S. stock markets.
4. Liquidity Rushes to the Closing Bell As ETFs rebalance towards the end of trading sessions, liquidity has increasingly clustered during these periods. Around one-third of S&amp;P 500 trades now occur in the final 10 minutes of the day, Panigirtzoglou points out, creating a feedback loop of concentrated activity.
5. Concentrated Risks in a Few ETFs The rise of giant ETFs like the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and the Invesco QQQ Trust, Series 1 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) has introduced systemic risks. Panigirtzoglou argues that their scale and importance rival those of equity futures, making the market vulnerable to large, single-product flows.
6. Algorithmic Traders Are Thriving Bond ETFs, in particular, have bolstered electronic and algorithmic trading, says Panigirtzoglou. Non-bank market makers now dominate liquidity provision in fixed-income markets, capitalizing on high-volume, low-margin trades.
Popular bond ETFs, such as the iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>) and the Vanguard Total Bond Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BND#NYSE">BND</a>), are among the largest and most liquid bond market ETFs traded in the U.S.
7. Index Changes Have Outsized Effects Panigirtzoglou emphasizes how ETF-driven flows have magnified the impact of index rebalancing. Stocks entering major indices see outsized gains, while those removed face steeper declines than fundamentals might justify.
8. Corporate Governance Takes a Hit With passive funds dominating, Panigirtzoglou sees a decline in corporate activism. Unlike active managers, passive funds have little incentive to push for governance changes, which could diminish oversight.
9. Market Efficiency Is Declining The shift toward passive investing reduces opportunities for arbitrage, Panigirtzoglou argues, leading to more persistent mispricings. While this could lure active managers back, their ability to extract alpha has waned.
10. Passive Investing's Limit May Be Near Panigirtzoglou suggests there may be a natural ceiling for passive investing. If market inefficiencies grow too large, active managers could stage a comeback, attracting capital back from ETFs to actively managed funds.
The ETF revolution has undoubtedly democratized investing, but Panigirtzoglou warns that its rapid rise comes with unintended consequences. 
From concentrated liquidity to increased systemic risks, the landscape is evolving in ways that demand vigilance. 
As ETFs near the $15 trillion milestone, will passive dominance plateau, or is its impact just beginning?
Read Next: 
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<li><a href="https://www.benzinga.com/24/11/42107863/us-futures-head-lower-as-nvidia-reports-slowdown-in-quarterly-revenue-growth-expert-says-market-weakness-is-perfectly-normal-but-late-november-is-still-possible">US Futures Head Lower As Nvidia Earnings Fail To Impress Investors: Expert Says Market Weakness Is &#8216;Perfectly Normal,&#8217; But Late November Rally Is Still Possible</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

10 Ways ETFs Are Reshaping US Markets As They Near $15 Trillion

Investors looking to bonds and bond ETFs for stability may face heightened volatility due to President-elect Donald Trump's approach to tariffs could put <a href="https://www.benzinga.com/topic/treasury-yields">upward pressure on yields</a>.
What Happened: Bond yields continue to climb after the Fed's 25-basis-point rate cut on Thursday. With the 10-year Treasury yield reached 4.34% in response to market speculation around Trump's fiscal agenda.
This shift complicates the Federal Reserve's efforts to ease borrowing costs, a concern for individual bondholders and bond ETFs investors. The backdrop of tax cuts and anticipated tariffs could limit the Fed's <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41814589/why-trumps-boost-to-treasury-yields-inflation-expectations-may-weaken-feds-efforts-">ability to cut rates deeply</a>.
Also Read: <a href="https://www.benzinga.com/24/11/41886697/two-ideas-famed-stock-market-forecasters-agree-on-for-2025">Why Trump&#8217;s Win Has 2 Market Experts Betting On Small Caps, Financials</a>
Since mid-September, Treasury yields have surged by over 70 basis points, putting additional pressure on bond prices and impacting major bond ETFs. BofA Global Research has adjusted its outlook, with Treasury yields now projected in the 4.25%-4.75% range, Reuters reports. This rising yield environment creates challenges for bonds, as higher yields correspond to declining bond prices, which could erode returns for investors in bond ETFs.
Why It Matters: According to Reuters, the Committee for a Responsible Federal Budget estimates that Trump's proposed fiscal policies will add approximately $7.75 trillion to the national debt in a decade. Economists, banks and analysts have all warned that the <a href="https://www.benzinga.com/personal-finance/24/09/40961812/economists-warn-trumps-plans-for-tax-cuts-tariffs-and-deportation-could-trigger-skyrocketing-inf">plans will worsen inflation</a> and make debt unsustainable.
Bond ETFs, which offer exposure across various segments of the bond market, are likely to feel the impact of these fiscal pressures as bond yields trend higher.
Increased yields may lead to more appealing income for bond ETF investors but could also heighten risks related to price declines as yields continue to rise.
On Monday, 10 prominent bond ETFs were mainly trading lower:
<ul>
<li>Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>): $72.93, down 0.22%.</li>
<li>iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>): $98.26, 0.25% lower.</li>
<li>SPDR Portfolio Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPAB#NYSE">SPAB</a>): $25.34, down 0.3%.</li>
<li>iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQD#NYSE">LQD</a>): $109.60, 0.23% lower.</li>
<li>Vanguard Short-Term Corporate Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VCSH#NASDAQ">VCSH</a>): $78.30, down 0.09%.</li>
<li>iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>): $91.93, down 0.6%.</li>
<li>Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VCIT#NASDAQ">VCIT</a>): $81.47, 0.22% lower.</li>
<li>iShares U.S. Treasury Bond ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/GOVT#BATS">GOVT</a>): $22.72, down 0.24%.</li>
<li>SPDR Bloomberg High Yield Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNK#NYSE">JNK</a>): $97.02, down 0.05%.</li>
<li>Vanguard Total International Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNDX#NASDAQ">BNDX</a>): $49.94, up 0.09%</li>
</ul>
With rising bond yields and fiscal expansion under Trump, bond ETFs could continue to see volatility. 
Bond investors may need to weigh the attraction of higher yields against potential declines in bond prices, particularly in high-yield and long-term Treasury segments, where market shifts are expected to be most pronounced.
Read Next:
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<li><a href="https://www.benzinga.com/government/regulations/24/11/41885777/how-trumps-tax-cuts-tariffs-animal-spirits-could-shape-sp-500-earnings">How Trump&#8217;s Tax Cuts, Tariffs, &#8216;Animal Spirits&#8217; Could Shape S&amp;P 500 Earnings</a></li>
</ul>
Photo: Shutterstock

Government

Politics

GOVT

SPAB

VCSH

Bond ETFs Slide As Fed Cuts Clash With Trump's Fiscal Agenda

Americans receiving <a href="https://www.benzinga.com/personal-finance/24/09/40800774/gen-xs-looming-retirement-crisis-is-worse-than-they-realize-expert-compares-it-to-being-handed-a">Social Security payments</a> may see less of an increase next year, according to a nonprofit group that represents senior citizens.
The Social Security Administration is poised to announce its yearly cost of living adjustment (COLA) for payments to 71 million Americans in the middle of next month, effective in January 2025. The government agency handed out a 3.2% increase for this year last October.
The Senior Citizens League expects a 2.5% increase for next year, based on inflation falling from 2.9% in July to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40815794/fed-is-all-clear-for-launch-on-cutting-rates-as-inflation-falls-to-lowest-point-in-">2.5% in August</a>.
By law, the annual inflation adjustment is based on the average inflation during July, August, and September&nbsp;as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Read Also: <a href="https://www.benzinga.com/personal-finance/24/09/40817544/report-warns-of-16-500-annual-social-security-benefit-cut-for-dual-income-couples-by-2033">Report Warns of $16,500 Annual Social Security Benefit Cut for Dual-Income Couples by 2033</a>
The Bureau of Labor Statistics averages the CPI-W for these three months and then compares it with the same time frame from the previous year. The percentage difference between the two is the COLA, payable for checks received in January 2025. 
The league says the expected 2.5% increase will not be enough for seniors to meet the higher cost of living. 
Nearly 80% of senior households report that their monthly budget for essential items like food, housing, and prescription drugs had increased over the last 12 months, according to a 2024 survey taken by the organization. Almost two-thirds &#8212; 63% &#8212; say they&#8217;re worried that their income won&#8217;t be enough to cover these basic costs in the coming months.
&#8220;Ensuring that seniors have enough to feed and house themselves with dignity is a major reason why we advocate for a minimum COLA of 3%,&#8221; said Shannon Benton, the league&#8217;s executive&nbsp;director.&nbsp;
She said about two-thirds of seniors rely on Social Security for more than half of their monthly income, and 28% depend on it entirely.
Retirement Stocks
Dividend-yielding, retirement-oriented stocks, typically selected for their risk-averse nature, experienced mixed performance by midday trading on Monday.
<ul>
<li>Coca-Cola Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>) gained 0.92% to $72.06.</li>
<li>Anhueser Busch InBev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>) slipped 0.41% to $64.63.</li>
<li>Dominion Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/D#NYSE">D</a>) rose 1.07% to $58.78.</li>
<li>Microsoft Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) slipped 0.19% to $429.78.</li>
</ul>
Retirement ETFs
Exchange-traded funds that are well suited for retirement trended upward on Monday.
<ul>
<li>Vanguard High Dividend Yield ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VYM#NYSE">VYM</a>) rose 0.41%.</li>
<li>IShares MSCI EAFE ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EFA#NYSE">EFA</a>) gained 0.34%.</li>
<li>Vanguard Total World Stock ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VT#NYSE">VT</a>) edged up 0.53%.</li>
<li>IShares Cohen &amp; Steers REIT ETF ((BATS: <a class="ticker" href="https://www.benzinga.com/stock/icf#BATS">ICF</a>) went up 0.20%.</li>
<li>Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>) inched up 0.21%.</li>
</ul>
Retirement Plan Stocks
Financial service firms that offer retirement plans were also on the upswing on Monday.
<ul>
<li>The Charles Schwab Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>) picked up 2.5% to $63.67.</li>
<li>Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) gained 1.89% to $53.78.</li>
<li>JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) gained 1.47% to $201.33.</li>
</ul>
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</ul>
Photo: Shutterstock

iShares Trusthen & Steers Realty Majors Index Fund

MSFT

SCHW

Social Security Payments Set For 2.5% Increase Next Year; Retirement-Oriented Dividend Stocks Like Coca-Cola, Wells Fargo See Gains

Bond traders predict that the Federal Reserve&#8216;s<a href="https://www.benzinga.com/government/24/06/39506407/6-biggest-us-banks-ramp-up-buybacks-undeterred-by-stress-tests"> interest-rate cuts </a>will go well beyond what the agency has forecast for the next nine months.
Traders in the U.S. rates options market expect a much higher 3 percentage points worth of cuts by March. This dwarfs the Fed&#8217;s recent projections of just 25 basis points of reductions by the end of 2024 and a total 125-basis-point cut by the end of next year, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-06-25/bond-traders-boldly-bet-on-300-basis-points-of-fed-cuts-by-march?cmpid=BBD062624_OUS&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=240626&amp;utm_campaign=openamericas&amp;sref=TBDibEcD">reported</a>.
Options-market activity related to the secured overnight financing rate over the past three sessions show a significant upside if the Fed reduced its key rate by 300 basis points to 2.25% by next year&#8217;s first quarter.
Also Read: <a href="http://Bank Stocks Trend Upward As Fed Shares Possible Changes To Bank-Capital Overhaul">Bank Stocks Trend Upward As Fed Shares Possible Changes To Bank-Capital Overhaul</a>
This scenario would allow traders to hedge other investments, but it is an unlikely outcome unless the U.S. economy plummets into recession.
Investors have been keeping a close eye on economic data and remarks by Fed officials for any clues on the timing of eventual Fed easing while hedging against extreme rate cuts and other tail-risk outcomes.
Price Action:  iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>) slipped 0.36% by early-afternoon trading on Wednesday, while Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>) declined 0.40%. Vanguard Total International Bond ETF (BNDX) slid 0.43%.
Now Read: <a href="https://www.benzinga.com/real-estate/24/05/38647920/homebuyers-get-mixed-news-from-freddie-mac-and-the-federal-reserve">Homebuyers Get Mixed News From Freddie Mac And The Federal Reserve</a>
Image: Shutterstock

Bond Traders Expect Much Deeper Interest Rate Cuts Than Projected

Markets are expecting the neutral rate &#8212; a theoretical rate that remains stable due to full employment and stable inflation &#8212; to stay higher than policymakers are forecasting. What does this mean for bond <a href="https://www.msn.com/en-us/money/markets/bond-etfs-unfazed-by-fed-decision-to-keep-rates-steady/ar-BB1ob69W">exchange-traded funds</a>?
A higher neutral rate may limit the Federal Reserve&#8217;s ability to cut interest rates, possibly causing headwinds for bonds, <a href="https://www.bloomberg.com/news/articles/2024-06-23/how-long-will-high-rates-last-bond-markets-say-maybe-forever?srnd=homepage-americas&amp;sref=TBDibEcD">Bloomberg </a>reports. 
Forward contracts on the five-year interest rate in the next five years — a proxy for the market's view of where U.S. rates might land — have stagnated at 3.6%. That is down from last year's peak of 4.5%, but it's still more than one full percentage point higher than the average over the past decade and above the Fed's own estimate of 2.75%.
This indicates the market is pricing in a much more elevated floor for yields, according to Bloomberg. This may limit bond performance, which might hamper investors&#8217; hopes for the kind of bond rally that saved them late last year.
Also read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39420979/us-economy-in-state-of-unstable-equilibrium-study-finds">US Economy &#8216;In State Of Unstable Equilibrium,&#8217; Study Finds</a>
Investor sentiment is rising steadily, but a Bloomberg gauge of Treasury returns was down just 0.3% in 2024 as of Friday, after shedding 3.4% for the year at its low point. Benchmark yields are down about half a percentage point from their year-to-date peak in April, Bloomberg reported.
The true level of the neutral rate, also known as R-Star, may take an upward trend that would reverse a decades-long downward drift on expectations for large and protracted government budget deficits and increased spending on battling climate change.
Further gains in bonds may require a more pronounced slowdown in inflation and growth to prompt interest rate cuts more quickly and deeply than the Fed currently envisions. A higher neutral rate would make this scenario less likely, according to Bloomberg.
Economists expect&nbsp;data next week&nbsp;to show that the Fed's preferred gauge of underlying inflation slowed to an annualized rate 2.6% last month from 2.8%. 
That is the lowest reading since March 2021, but it still exceeds the Fed's goal for 2% inflation. And the unemployment rate has been at or below 4% for more than two years, the best performance since the 1960s.
Price action: iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>) was up 0.01%, the Vanguard Total Bond Market Index Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>) was down 0.04% and the Vanguard Total International Bond Index Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNDX#NASDAQ">BNDX</a>) slipped 0.12% at the time of publication Monday.
Read Next:
<a href="https://www.benzinga.com/economics/macro-economic-events/23/12/36438336/investor-optimism-tested-navigating-2024-bond-markets-uncertain-terrain">Investor Optimism Tested: Navigating 2024 Bond Market&#8217;s Uncertain Terrain</a>
Photo: Shutterstock

Media

Market's Higher Neutral Rate Expectations May Challenge Bond ETFs

The European Central Bank is universally <a href="https://www.benzinga.com//node/39029946">expected to cut interest rates for the Euro area this week</a>.
Cutting back on interest rates for the first time in two decades can be seen as a positive sign for the dwindling European economy, which has been hit by slow growth and poor demographic patterns.
Average inflation in Euro area countries has been mostly on a downward trend since last year, reaching an annual 2.4% in both March and April, down from a peak of 10.6% in October 2022.
The measure, however, is very dynamic within the block, with figures as low as 0.4% for Lithuania and as high as 4.9% in Belgium.
The ECB commenced its latest rate hike cycle in July 2022. Key ECB interest rates, the European counterpart for the federal funds rate, was hiked a total of 10 times and now stands at 4%. The same rate has been kept steady since September of last year.
June's cut will bring the rate down by 25 basis points to a floor of 3.75%.
Yet the steady pace towards the ideal measure of 2% annual inflation might be hitting a roadblock this month, as Eurostat, the block's main statistics office, is estimatfing that May's inflation has gone up to 2.6%, above estimates of 2.5%.
If the measure is confirmed, it won&#8217;t interfere with plans to lower interest rates. It might influence a decision by the ECB to pause rates during July and slow the speed of rate cuts down the line.
Bloomberg Economics has <a href="https://www.bloomberg.com/news/articles/2024-06-01/central-banks-latest-world-rate-paths-set-to-diverge-with-ecb-s-first-cut?sref=TBDibEcD">forecast</a> a pause in July and further cuts in September, October and December.
Read Also: <a href="https://www.benzinga.com/news/24/05/38951699/eu-approves-3-5b-in-frozen-russian-assets-for-ukraine-janet-yellen-has-a-plan-to-increase-amount-by">EU Approves $3.5B In Frozen Russian Assets For Ukraine: Janet Yellen Has A Plan To Increase Amount By Over 10X</a>
<h3 class="wp-block-heading">What This Means For US</h3>
Timing for the EU's latest inflationary cycle is in line with the U.S.'s wave of price increases. Both territories have been subject to the same variables. Energy prices, for example, are affected by the Ukraine/Russia war.
Yet the block's inflation is easing faster than in the U.S.
<a href="https://www.benzinga.com/markets/equities/24/05/38842603/us-inflation-falls-as-expected-in-april-bolsters-fed-rate-cut-bets">Yearly U.S. inflation was 3.4% in April</a>, down from 3.5% in March. 
On Friday, the Fed's preferred measure for inflation, the Personal Consumption Expenditure, was released for the month of April, showing <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/39110198/feds-preferred-inflation-gauge-matches-estimates-personal-income-spending-slow-mo">a steady course, with a 2.7% annual rise as compared to the previous year</a>.
In a Monday interview, Minneapolis Fed President Neel Kashkari advocated for maintaining the current Fed funds rate in the U.S. for a longer period <a href="https://www.benzinga.com/24/06/39131539/feds-neel-kashkari-advocates-for-no-interest-rate-cut-until-we-get-a-lot-more-data-to-convince-us-am">to avoid the risk of jeopardizing U.S. economic prosperity</a>.
The EU's decision will further widen the gap with the cost of borrowing in the U.S., where the federal funds rate now stands at between 5.25% and 5.5%.
Canada is also expected to slash rates this week, in a decision to be confirmed on Wednesday, also widening the gap of borrowing cost across the Northern border, putting further pressure on the Fed to begin slashing rates sooner rather than later.
Canada's annual inflation rate also shows a better trajectory than its American counterpart, having dropped to 2.7% in April, down from 2.9% in March.
An upcoming <a href="https://www.benzinga.com/topic/jobs-report">jobs report</a> this Friday will further inform the Fed in its upcoming decisions. Economists are estimating the creation of 190,000 jobs in May.
<h3 class="wp-block-heading">Stocks And Other Assets To Watch </h3>
Fixed-income securities like government bonds tend to go up as interest rates are slashed.
Their prices will likely be affected by expectations around upcoming rate cuts in the U.S.
Last week, Bank of America chief investment strategist Michael Hartnett said <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39116124/bank-of-america-strategist-shifts-to-bonds-stock-sell-off-prophecy-on-benign-inflat">he's bullish on bonds for the second half of the year as expectations</a> on rate cuts grow and may even become realized.
He said to "buy any dip in bond prices," while recommending to "sell the first cut" for stocks.
While there are many ways to <a href="https://www.benzinga.com/money/how-to-buy-bonds">buy government bonds</a>, investors can also access the bond market by purchasing bond ETFs like iShares Core US Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>) and Vanguard Total Bond Market Index Fund ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>).
<h3 class="wp-block-heading">Real Estate</h3>
The real estate market has been <a href="https://www.benzinga.com//node/39110330">one of the worst hit by the recent wave of rate increases</a>, as the cost of borrowing for both commercial and personal building and renovation has skyrocketed.
Expectations on rate cuts could turn out to be a lifeline for the sector, which is covered by ETFs like Vanguard Real Estate Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>), Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>) and Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>).
Now read: <a href="https://www.benzinga.com//node/38934737">EU Enacts World&#8217;s First AI Regulation, First Compliance Trigger Will Aim To Tackle AI Systems That Pose &#8216;Unacceptable&#8217; Risk</a>
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Pressure Mounts On Fed As Eurozone, Canada Plan Interest Rate Cuts This Week

Investors are growing increasingly concerned about the potential impact of the <a href="https://www.benzinga.com/news/24/04/38104382/serious-debate-needed-to-avert-2025-us-debt-crisis-warns-wharton-expert">mounting U.S. debt</a> on the bond market, with the issue expected to take center stage as the presidential election approaches.
What Happened: The U.S. government&#8217;s debt is expected to balloon, potentially overshadowing an anticipated bond rally. This is due to the ongoing large fiscal deficits, which show no signs of abating ahead of the presidential election, Reuters reported on Friday.
Investors are already adjusting their portfolios to mitigate potential losses if Treasury yields surge due to supply and demand imbalances. There are also concerns that the uncertainty surrounding the necessary debt for deficit spending could destabilize the $27 trillion Treasury market, a cornerstone of the global financial system.
Despite the focus on the Federal Reserve&#8217;s potential interest rate cuts, analysts and investors anticipate that fiscal concerns will become more pronounced as the election nears. Both President Joe Biden and Republican candidate Donald Trump have not made reducing deficit spending a priority, according to the report.
See Also: <a href="https://www.benzinga.com/news/24/05/38955491/mohamed-el-erian-and-bitcoin-critic-peter-schiff-highlight-golds-soaring-prices-and-market-momentum?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Mohamed El-Erian And Bitcoin-Critic Peter Schiff Highlight Gold&#8217;s Soaring Prices And Market Momentum: &#8216;Just Sit Tight And Enjoy The Ride&#8217;</a>
Why It Matters: The concerns over rising U.S. debt come amid a broader financial landscape marked by significant shifts. On May 16, disinflation hopes began reshaping Treasury yields, with expectations of Federal Reserve rate cuts influencing market trends.
This shift contributed to an optimistic sentiment about <a href="https://www.benzinga.com/general/macro-notification/24/05/38880563/disinflation-hopes-reshape-treasury-yields-major-trend-5-bond-etfs-poised-to-rally-on-">potential rallies in bond ETFs</a>, such as the Vanguard Total Bond Market ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BND#NASDAQ">BND</a>) and iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EMB#NASDAQ">EMB</a>).
Additionally, the <a href="https://www.benzinga.com/news/earnings/24/05/38916165/nasdaq-s-p-500-futures-keep-head-above-water-ahead-of-fed-speeches-analyst-says-market-boosting-the">S&amp;P 500 and Nasdaq futures</a> showed resilience ahead of key Federal Reserve speeches, indicating a market buoyed by optimism. This positive sentiment was reflected in the performance of major indices like the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), and SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
Read Next: <a href="https://www.benzinga.com/news/earnings/24/05/38960399/wall-street-braces-for-subdued-start-ahead-of-nvidia-earnings-fed-minutes-analyst-cautions-about-gu?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Why Nasdaq, S&amp;P 500 Futures Are Flatlining Wednesday</a>
Photo by Austin Distel on Unsplash
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

iShares JPMorgan USD Emerging Markets Bond Fund

Investors Fear Mounting US Debt Could Overshadow Bond Rally Ahead Of Presidential Elections

A major trend shift is unfolding in the bond market, as key Treasury yields are currently testing the support of the crucial 200-day moving average, following the release of benign economic data that has cemented investor bets on <a href="https://www.benzinga.com/markets/equities/24/05/38842603/us-inflation-falls-as-expected-in-april-bolsters-fed-rate-cut-bets">Federal Reserve rate cuts.</a>
Last month, the inflation rate calculated using the consumer price index (CPI) came in at 3.4% compared to the same month last year, down from 3.5% in March, and in line with the forecasted 3.4% increase. The &#8220;core&#8221; inflation rate, which excludes volatile energy and food prices, also matched estimates, falling from 3.8% to 3.6%.
April's inflation reading has raised hopes that the disinflation trend may restart after three consecutive higher-than-predicted CPI readings in the first quarter. 
In his recent comments, Federal Reserve Chair Jerome Powell downplayed concerns about a possible hike in interest rates, signaling that the next adjustment would likely be a reduction. However, he emphasized this cut might come later than the markets initially anticipated.
Money markets are currently factoring in a 50 basis point reduction in interest rates by the end of the year, with a 70% chance for the Federal Reserve to begin its loosening cycle in September.
<h1 class="wp-block-heading">Treasury Yields Eye 200-Day Moving Average Support</h1>
The yield on the benchmark 10-year Treasury note traded at around 3.36% on Thursday, hitting an intraday low of 3.31%, temporarily sliding below the 200-day average positioned at 3.33%. 
Similarly, yields on both 2-year and 30-year Treasury notes are currently testing the support of the 200-day average.
The 200-day moving average is a widely watched technical indicator that helps investors gauge the long-term trend of a security or index. 
When Treasury yields fall below this level, it often signals a bearish or downward trend, suggesting that investors are seeking safer assets amid expectations of a slowing economy or lower interest rates. This shift can create a more favorable environment for bond prices, which move inversely to yields.
Here&#8217;s a snapshot of the current yield levels compared to their 200-day moving averages, as well as their 2024 high-to-low range. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Maturity</th>
<th>Current Yield</th>
<th>200-day Moving Average</th>
<th>2024 Peak</th>
<th>2024 Low</th>
</tr>
</thead>
<tbody>
<tr>
<td>2 year</td>
<td>4.78%</td>
<td>4.75%</td>
<td>5.05%</td>
<td>4.12%</td>
</tr>
<tr>
<td>5 year</td>
<td>4.39%</td>
<td>4.35%</td>
<td>4.75%</td>
<td>3.75%</td>
</tr>
<tr>
<td>10 year</td>
<td>4.36%</td>
<td>4.33%</td>
<td>4.74%</td>
<td>3.82%</td>
</tr>
<tr>
<td>30 year</td>
<td>4.50%</td>
<td>4.48%</td>
<td>4.85%</td>
<td>4.07%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated as of May 16, 2024 (11:45 a.m. EDT) </figcaption></figure>
<h1 class="wp-block-heading">Chart: Inflation Data Casts Doubt On 10-Year Treasury Yield&#8217;s 2024 Rising Trend</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/16112728/image-70-1024x495.png" alt="" class="wp-image-341796" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/16112728/image-70-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/16112728/image-70-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/16112728/image-70-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/16112728/image-70-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/16112728/image-70.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38873168/us-inflation-data-prematurely-released-by-accident-yet-traders-missed-golden-oppo">US Inflation Data Prematurely Released By Accident, Yet Traders Missed Golden Opportunity</a>
<h1 class="wp-block-heading">Bond ETFs Set To Rally</h1>
The shift in Treasury yields has set the stage for a rally in bond ETFs, especially those focused on long-duration bonds. 
Here are five bond ETFs poised to benefit from rising expectations of Fed rate cuts:
<ol>
<li>iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>): This ETF tracks long-term U.S. Treasury bonds and is particularly sensitive to changes in interest rates. With long-dated yields falling, TLT could see sharp gains as it moves inversely to yields. In reaction to April&#8217;s inflation data, it rose 1.4% on the day.</li>
<li>Vanguard Total Bond Market Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BND#NYSE">BND</a>): A broader option, BND includes a mix of short-, medium-, and long-term bonds. Its diversified approach makes it a stable choice as market sentiments shift. Following the latest inflation statistics, BND inched 0.6% higher.</li>
<li>iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQD#NYSE">LQD</a>): As rate cut expectations strengthen, investment-grade corporate bonds could see price increases. LQD offers exposure to this segment.</li>
<li>SPDR Bloomberg High Yield Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNK#NYSE">JNK</a>): Higher risk and higher reward, JNK covers the high-yield, or &#8220;junk,&#8221; bond market. Rate cuts often boost these bonds as investors hunt for yield.</li>
<li>iShares J.P. Morgan USD Emerging Market Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EMB#NYSE">EMB</a>): As Treasury yields retreat and the Fed hints at a slower pace for rate hikes, emerging markets bonds could benefit from increased investor appetite for higher-yielding assets. Notably, EMB rose 1.1% on Wednesday, positively reacting to inflation data. </li>
</ol>
Read Now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38850154/economists-react-to-inflation-retail-sales-the-soft-landing-narrative-is-still-a-po">Economists React To Inflation, Retail Sales: &#8216;The Soft Landing Narrative Is Still A Possibility But Not A Guarantee&#8217;</a>
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