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Which Short Term Bond Fund Should I Invest in Top 4 Vanguard Short Term Bond Fund Review!
 
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Which Short Term Bond Fund Should I Invest in Top 4 Vanguard Short Term Bond Fund Review! Learn about the best Vanguard Bond (Index Fund ETF's) Find out about the 4 top performing Short-Term Vanguard Bond ETF funds available through Vanguard. The spreadsheet in the video can be downloaded here: Dropbox link: https://www.dropbox.com/s/760gewzc6eblc86/Top%204%20performing%20Vanguard%20short%20term%20bond%20funds%2011.1.18.xlsx?dl=0 Video Outline and Time Stamps so you can quickly jump to any topic: • Vanguard Short-term Bond ETF (BSV) - 0:39 • Vanguard Inflation Protected Bond ETF (VTIP) - 5:15 •Vanguard Short-Term Treasury ETF (VGSH) - 7:05 • Vanguard Short-Term Corporate Bond ETF (VCSH) - 8:45 • Vanguard bond fund etf comparison - 11:23 • Bond Fund Chart Comparisons - 12:24 In this very detailed review you will learn about the four Vanguard Long-Term Bond Funds Etfs (Index Funds) available to invest in. The four Vanguard Long-Term Bond Funds 1.Vanguard Short-term Bond ETF (BSV) 2.Vanguard Inflation Protected Bond ETF (VTIP) 3. Vanguard Short-Term Treasury ETF (VGSH) 4. Vanguard Short-Term Corporate Bond ETF (VCSH) Important Educational Links Re: Bond Funds 5 Reasons to start investing in bonds https://www.wisebread.com/the-5-best-reasons-to-start-investing-in-bonds-now The Advantage of Bonds https://www.investopedia.com/articles/00/111500.asp Risks of Bonds https://www.getsmarteraboutmoney.ca/invest/investment-products/bonds/risks-of-bonds/ http://www.finra.org/investors/understanding-bond-risk What is a bond? https://www.investopedia.com/terms/b/bond.asp Why Rising Interest Rates are Bad for Bonds https://www.forbes.com/sites/mikepatton/2013/08/30/why-rising-interest-rates-are-bad-for-bonds-and-what-you-can-do-about-it/#1712101c6308 https://www.investopedia.com/ask/answers/why-interest-rates-have-inverse-relationship-bond-prices/ Money Market Vs Short-Term Bonds https://www.investopedia.com/articles/investing/041916/money-market-vs-shortterm-bonds-compare-and-contrast-case-study.asp How To Choose The Right Bond Funds https://www.thebalance.com/choosing-bond-fund-term-416948 Short-Term Vs. Intermediate-Term Bond Funds https://finance.zacks.com/shortterm-vs-intermediateterm-bond-funds-1573.html Check out some of our other videos and playlists here: ♦ Investing in the stock market!: https://goo.gl/yVAoES ♦ Save money, budget, build wealth and improve your financial position at any age: https://goo.gl/E97nJj ♦ Learn more about how federal income taxes work: https://goo.gl/D1hCX1 ♦ Ways to improve your life at any age: https://goo.gl/uq72bu Subscribe for our future weekly videos. New videos typically every Sunday or Wednesday. Do not forget to help out a friend and share this information with them as well. About me: I'm passionate about helping people build wealth by learning more about personal finances, investing and taxes. My mission is to help people improve their financial position career and life. I also enjoy teaching others about the accounting profession, tech tips, and helping people overcome challenges in their everyday life as well as their career. My Website: Moneyandlifetv.com Twitter: https://twitter.com/Mkchip123 Facebook: https://www.facebook.com/moneyandlifetv/ ***Disclaimer*** All of the information in this video is presented for educational purposes only and should not be taken as financial, tax, or investing advice by any means. I am not a financial adviser. Although I am a CPA I cannot advise someone for tax purposes without knowing their complete tax situation. You should always do your own research before implementing new ideas or strategies. If you are unsure of what to do you should consider consulting with a financial adviser or tax accountant such as an Enrolled Agent, or Certified Public Accountant in the area in which you live. Thanks for taking time to check out this video, and our channel. Have a great day and we will see you in the next video!
Views: 2214 Money and Life TV
Key Things to Know about Fixed Income ETFs | Fidelity
 
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Find out more about exchange-traded funds with us at the https://www.fidelity.com/learning-center/investment-products/etf/overview To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ------------------------------------------------------------------------------------------ Fixed income can be a critical part of nearly every well-diversified portfolio. Used correctly, fixed income can add diversification and a steady source of income to any investor’s portfolio. But how do you choose the right fixed-income ETF? The key to choosing the right fixed-income ETF lies in what it actually holds. U.S. bonds or international bonds? Government securities or corporate debt? Bonds that come due in two years or 20 years? Each decision determines the level of risk you’re taking and the potential return. There are many types of risks to consider with bond investing. Let’s talk more about two in particular: Credit risk and Interest-rate risk. Determining the level of credit risk you want to assume is an important first step when choosing a fixed-income ETF. Do you want an ETF that only holds conservative bonds—like bonds issued by the U.S. Treasury? Or do you want one holding riskier corporate debt? The latter may pay you a higher interest rate, but if the company issuing the bond goes bankrupt, you’ll lose out. ETFs cover the full range of available credit. Look carefully at the credit quality composition of the ETFs underlying holdings, and don’t be lured in by promises of high yields unless you understand the risks. Bonds are funny. Intuitively, you would assume that higher interest rates are good for bondholders, as they can reinvest bond income at higher prevailing interest rates. But rising interest rates may be bad news, at least in the short term. Imagine that the government issues a 10-year bond paying an interest rate of 2%. But shortly thereafter, the U.S. Federal Reserve hikes interest rates. Now, if the government wants to issue a new 10-year bond, it has to pay 3% a year in interest. No one is going to pay the same amount for the 2% bond as the 3% bond; instead, the price of the 2% bond will have to fall to make its yield as attractive as the new, higher-yielding security. That’s how bonds work, like a seesaw: As yields rise, prices fall and vice versa. Another important measure to consider when looking at interest rate risk is duration which helps to approximate the degree of price sensitivity of a bond to changes in interest rates. The longer the duration, the more any change in interest rates will affect your investment. Conversely, the shorter the duration, the less any change in interest rates will affect your investment. Let’s review a few other considerations when looking at fixed income ETFs. First, expense ratios: Because your expected return in a bond ETF is lower than in most stock ETFs, expenses take on extra importance. Generally speaking, the lower the fees, the better. Second, tracking difference: It can be harder to run a bond index fund than an equity fund, so you may see significant variation between the fund’s performance and the index’s returns. Try to seek out funds with low levels of tracking difference, meaning they track their index well. Finally, some bonds can be illiquid. As a result, it’s extra important to look out for bond ETFs with good trading volumes and tight spreads. There are other factors to watch for too, but these are the basics. ETFs can be a great tool for accessing the bond space, but as with anything, it pays to know what you’re buying before you make the leap. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917 723251.2.0
Views: 59813 Fidelity Investments
3 Rules for Investing in Bond ETFs
 
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Robert Smith, chief investment officer at Sage Advisory, explains how he has positioned clients for the next Fed move, and how he picks exchange traded funds. Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM
Views: 9854 Wall Street Journal
Look to Short-Duration Bond ETFs to Hedge Rate Risks
 
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Many fixed-income investors are concerned about the Federal Reserve's tighter monetary policy with interest rate hikes during the end of a traditional economic cycle. Consequently, more are looking into short-duration bond exchange traded funds to limit risks and still produce attractive yields.
Views: 102 ETF Trends
Which Bond Fund ETF Should I Invest In? Vanguard Long-Term Bond Funds ETFs With High Yields!
 
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2018 Vanguard Long-Term Bond Fund ETF's With High Yields! Which Vanguard Bond fund should invest in? Learn about the best Vanguard dividend funds (Index Fund ETF's) Find out about the 4 top performing Vanguard Bond ETF funds available through Vanguard. The spreadsheet in the video can be downloaded here: Dropbox link: https://www.dropbox.com/s/ky22y2y0lt8ru0a/Top%204%20performing%20Vanguard%20bond%20funds%202018.xlsx?dl=0 or http://moneyandlifetv.com/downloads Video Outline and Time Stamps so you can quickly jump to any topic: • Vanguard Extended Duration Treasury ETF (EDV) - 1:22 • Vanguard Long-Term Bond Fund ETF (BLV) - 5:25 • Vanguard Long-Term Corporate Bond Fund ETF (VCLT) - 7:34 • Vanguard Tax Exempt Bond Fund ETF (VTEB) - 9:05 • Vanguard bond fund etf comparison - 11:38 • Bond Fund Pros and Cons (Bond Risks, etc) - 12:10 In this very detailed review you will learn about the four Vanguard Long-Term Bond Funds Etfs (Index Funds) available to invest in. The four Vanguard Long-Term Bond Funds 1.Vanguard Extended Duration Treasury ETF (EDV) 2. Vanguard Long-Term Bond Fund ETF (BLV) 3. Vanguard Long-Term Corporate Bond Fund ETF (VCLT) 4. Vanguard Tax Exempt Bond Fund ETF (VTEB) Check out some of our other videos and playlists here: ♦ Investing in the stock market!: https://goo.gl/yVAoES ♦ Save money, budget, build wealth and improve your financial position at any age: https://goo.gl/E97nJj ♦ Learn more about how federal income taxes work: https://goo.gl/D1hCX1 ♦ Ways to improve your life at any age: https://goo.gl/uq72bu Subscribe for our future weekly videos. New videos typically every Sunday or Wednesday. Do not forget to help out a friend and share this information with them as well. About me: I'm passionate about helping people build wealth by learning more about personal finances, investing and taxes. My mission is to help people improve their financial position career and life. I also enjoy teaching others about the accounting profession, tech tips, and helping people overcome challenges in their everyday life as well as their career. You can find our content on other internet planets such as....... My Website: Moneyandlifetv.com Twitter: https://twitter.com/Mkchip123 Facebook: https://www.facebook.com/moneyandlifetv/ ***Disclaimer*** All of the information in this video is presented for educational purposes only and should not be taken as financial, tax, or investing advice by any means. I am not a financial adviser. Although I am a CPA I cannot advise someone for tax purposes without knowing their complete tax situation. You should always do your own research before implementing new ideas or strategies. If you are unsure of what to do you should consider consulting with a financial adviser or tax accountant such as an Enrolled Agent, or Certified Public Accountant in the area in which you live. Thanks for taking time to check out this video, and our channel. Have a great day and we will see you in the next video!
Views: 5028 Money and Life TV
Quick Takes:  Why Short Term Bonds Are Especially Defensive Today
 
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Andrew Wittkop, executive vice president and portfolio manager, discusses the merits of short duration strategies for investors concerned about rising interest rates and increased volatility. For more information, please visit http://pimco.com/cash-management Follow us for insights on economies, markets and investing: Twitter: https://twitter.com/pimco LinkedIn: http://www.linkedin.com/company/pimco Facebook: http://www.facebook.com/pimco Blog: http://blog.pimco.com Terms and conditions: pimco.com/socialmedia
Views: 915 PIMCO
Best Short-Term Investment Options (for high return 🚀)
 
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⁉️ Does this sound familiar: You've got some money sitting around in cash and you want to invest it and make a decent return. BUT 💭 you don't want to tie up your money too long 💭 you don't want to lose it Are there opportunities that even exist in today's low interest environment for short-term investing? There are a ton of you that are in this same situation with money sitting in cash- but you don't know what you options are. Today I am going to talk about this very topic in response to a reader question I received. 💻 My reader, Tien asked "What is the best thing to do with my money for short-term grown when I still want accessibility?" I offered a few tips for Tien: ✳️ Even with low interest rates, keep enough in savings for emergencies ✳️ Don't be tempted by short-term growth ✳️ Peer-to-peer lending is not a short-term investment ✳️ Exchange Traded Funds (ETFs) - They are low cost and offer a variety of options. Keep an emphasis on short-term bond ETFs in the 1-3 year range. You can get all the detailed information on each of these options in the video. 😉 ➡️ You can start your Betterment account here: https://www.goodfinancialcents.com/resources/betterment-youtube-invest-10k.php ★☆★ Want More Good Financial Cents? ★☆★ 💻 Check out my blog here: https://www.goodfinancialcents.com/ Listen to my podcast here: 🎙 https://itunes.apple.com/us/podcast/good-financial-cents-podcast-investing-building-wealth/id775107294?mt=2 Pick up my best selling book, Soldier of Finance, here: 📗 http://amzn.to/2xOH78V Connect with me on Twitter: https://twitter.com/jjeffrose My most favorite inspiration T-shirt line, Compete Every Day: 👕 https://www.goodfinancialcents.com/compete
Short-Term Bond ETFs Are More Attractive in Volatile Conditions
 
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With volatility gripping the markets, exchange traded fund investors have turned more risk averse and sought out the relative safety of short-term fixed-income assets.
Views: 58 ETF Trends
Understanding Bond ETFs
 
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Bond ETFs are changing the way we invest in bonds. Learn how bond ETFs are helping to make investing simpler, more transparent, and easier for investors of . Bond ETFs are changing the way we invest in bonds. Learn how bond ETFs are helping to make investing simpler, more transparent, and easier for investors of . ETF Trends Editor Tom Lydon sits down at the Morningstar ETF Conference with Ken Volpert, head of Vanguard's Taxable Bond Group, to discuss ways to . Global growth concerns and low inflation continue to support long term government bonds (TLT, VGLT). ISHARES 20+ YEAR TREASURY BOND ETF: .
Views: 1341 Ayocisora Amado
Short Term High Yield Bonds
 
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The current low interest rate environment means that bond investors have to take more risk in order to gain an attractive return on their invested money. The current low interest rates also present a risk that if interest rates and inflation rise in the future, then bond prices may fall and portfolios could suffer losses.
Views: 7962 hubbis
Bond Index Funds in Rising-Rate Environments | Common Sense Investing with Ben Felix
 
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If active management isn’t the answer, and interest rates really do have nowhere to go but up, should you still expect positive returns from your bonds? I’m Ben Felix, Associate Portfolio Manager at PWL Capital. In this episode of Common Sense Investing, I’m going to talk about bond index funds in rising-rate environments and advice you on why you don’t need to be afraid of bond index funds. I’ll be talking about a lot more common sense investing topics in this series, so subscribe and click the bell for updates. I want these videos to help you to make smarter investment decisions, so feel free to send me any topics that you would like me to cover! ------------------ Visit PWL Capital: https://goo.gl/uPcXg7 Follow PWL Capital on: - Twitter: https://twitter.com/PWLCapital - Facebook: https://www.facebook.com/PWLCapital - LinkedIN: https://www.linkedin.com/company-beta/105673/ Follow Ben Felix on - Twitter: https://twitter.com/benjaminwfelix -LinkedIn: https://www.linkedin.com/in/benjaminwfelix/
Views: 15983 Ben Felix
Before You Invest In a Bond Fund/ETF, Know This
 
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Understand the difference between a bond fund's 30 day SEC yield and its 12 month yield The difference could amaze you! ================================ If you like what you see, a thumbs up helps A LOT. It tells YouTube that people are engaged and so the Youtube algorithm will show the video to others who may be interested in the content. So, give me a thumbs up, please! Don't forget to SUBSCRIBE by clicking here: https://www.youtube.com/channel/UCSEzy4i9xrKPoaU9z0_XbmA?sub_confirmation=1 My Amazon Product page: https://www.amazon.com/shop/heritagewealthplanning Anything you buy there Amazon pays me a commission. Much appreciated! If you received value from this video and/or channel, and want to say thanks, feel free to send a donation via Paypal. I'm not too proud to ask! https://bit.ly/2Gq1QsE Contact me: [email protected] GET MY BOOKS: ALL are FREE to Kindle Unlimited Subscribers! The Tax Bomb In Your Retirement Accounts: How The Roth IRA Can Help You Avoid It https://amzn.to/2LHwQpt Strategic Money Planning: 8 Easy Ways To Put Your House In Order https://amzn.to/2wKGi50 State by State Tax Guide For Retirees: https://amzn.to/2A1TmkH GET ALL MY LATEST BLOGPOSTS: https://heritagewealthplanning.com PODCAST: https://itunes.apple.com/us/podcast/josh-scandlen-podcast/id1368065459?mt=2 http://heritagewealthplanning.com/category/podcasts/ LET'S SOCIALIZE! Facebook: http://Facebook.com/heritagewealthplanning Linkedin: https://www.linkedin.com/in/joshscandlen/ Quora: https://www.quora.com/profile/Josh-Scandlen Google +: https://plus.google.com/u/1/108893802372783791910
Vanguard Short Term Bond ETF
 
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VIDEO FINANCIAL REPORTING Why Invest in is the first financial video platform where you can easily search through thousands of videos describing global securities. About The Video: We believe that complex financial data could become more approachable using friendly motion-graphic representation combined with an accurate selection of financial data. To guarantee the most effective information prospective we drew inspiration from Benjamin Graham’s book: “The Intelligent Investor”, a pillar of financial philosophy. For this project any kind of suggestion or critic will be helpful in order to develop and provide the best service as we can. Please visit our site www.whyinvestin.com and leave a massage to us. Thank you and hope you'll enjoy. IMPORTANT INFORMATION - DISCLAIMER THIS VIDEO IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE. This video has been prepared by Whyinvestin (together with its affiliates, “Whyinvestin”) and is not intended to be taken by, and should not be taken by, any individual recipient as investment advice, a recommendation to buy, hold or sell any security, or an offer to sell or a solicitation of offers to purchase any security. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The performance of the companies discussed on this video is not necessarily indicative of the future performances. Investors should consider the content of this video in conjunction with investment reports, financial statements and other disclosures regarding the valuations and performance of the specific companies discussed herein. DO NOT RELY ON ANY OPINIONS, PREDICTIONS OR FORWARD-LOOKING STATEMENTS CONTAINED HEREIN. Certain of the information contained in this video constitutes “forward-looking statements” that are inherently unreliable and actual events or results may differ materially from those reflected or contemplated herein. None of Whyinvestin or any of its representatives makes any assurance as to the accuracy of those predictions or forward-looking statements. Whyinvestin expressly disclaims any obligation or undertaking to update or revise any such forward-looking statements. EXTERNAL SOURCES. Certain information contained herein has been obtained from third-party sources. Although Whyinvestin believes such sources to be reliable, we make no representation as to its accuracy or completeness. FINANCIAL DATA. Historical and fundamental data, ratios, exchange rate, prices and estimates are provided by Xignite,www.xignite.com. Data are sourced by Morningstar research. Whyinvestin does not verify any data and disclaims any obligation to do so. Whyinvestin, its data or content providers, the financial exchanges and each of their affiliates and business partners (A) expressly disclaim the accuracy, adequacy, or completeness of any data and (B) shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. Neither Whyinvestin nor any of our information providers will be liable for any damages relating to your use of the information provided herein. Please consult your broker or financial representative to verify pricing before executing any trade. Whyinvestin cannot guarantee the accuracy of the exchange rates used in the videos. You should confirm current rates before making any transactions that could be affected by changes in the exchange rates. You agree not to copy, modify, reformat, download, store, reproduce, reprocess, transmit or redistribute any data or information found herein or use any such data or information in a commercial enterprise without obtaining prior written consent. Please consult your broker or financial representative to verify pricing before executing any trade. COPYRIGHT “FAIR USE” Whyinvestin doesn’t own any logo different from the whyinvestin’ s logo contained in the video. The owner of the logos is the subject of the video itself (the company); and all the logos are not authorized by, sponsored by, or associated with the trademark owner . Whyinvestin uses exclusive rights held by the copyright owner for Educational purposes and for commentary and criticism as part of a news report or published article. If you are a company, subject of the video and for any reason want to get in contact with Whyinvestin please email: [email protected]
Views: 24 Why Invest In
Vanguard Short Term Government Bond ETF
 
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VIDEO FINANCIAL REPORTING Why Invest in is the first financial video platform where you can easily search through thousands of videos describing global securities. About The Video: We believe that complex financial data could become more approachable using friendly motion-graphic representation combined with an accurate selection of financial data. To guarantee the most effective information prospective we drew inspiration from Benjamin Graham’s book: “The Intelligent Investor”, a pillar of financial philosophy. For this project any kind of suggestion or critic will be helpful in order to develop and provide the best service as we can. Please visit our site www.whyinvestin.com and leave a massage to us. Thank you and hope you'll enjoy. IMPORTANT INFORMATION - DISCLAIMER THIS VIDEO IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE. This video has been prepared by Whyinvestin (together with its affiliates, “Whyinvestin”) and is not intended to be taken by, and should not be taken by, any individual recipient as investment advice, a recommendation to buy, hold or sell any security, or an offer to sell or a solicitation of offers to purchase any security. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The performance of the companies discussed on this video is not necessarily indicative of the future performances. Investors should consider the content of this video in conjunction with investment reports, financial statements and other disclosures regarding the valuations and performance of the specific companies discussed herein. DO NOT RELY ON ANY OPINIONS, PREDICTIONS OR FORWARD-LOOKING STATEMENTS CONTAINED HEREIN. Certain of the information contained in this video constitutes “forward-looking statements” that are inherently unreliable and actual events or results may differ materially from those reflected or contemplated herein. None of Whyinvestin or any of its representatives makes any assurance as to the accuracy of those predictions or forward-looking statements. Whyinvestin expressly disclaims any obligation or undertaking to update or revise any such forward-looking statements. EXTERNAL SOURCES. Certain information contained herein has been obtained from third-party sources. Although Whyinvestin believes such sources to be reliable, we make no representation as to its accuracy or completeness. FINANCIAL DATA. Historical and fundamental data, ratios, exchange rate, prices and estimates are provided by Xignite,www.xignite.com. Data are sourced by Morningstar research. Whyinvestin does not verify any data and disclaims any obligation to do so. Whyinvestin, its data or content providers, the financial exchanges and each of their affiliates and business partners (A) expressly disclaim the accuracy, adequacy, or completeness of any data and (B) shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. Neither Whyinvestin nor any of our information providers will be liable for any damages relating to your use of the information provided herein. Please consult your broker or financial representative to verify pricing before executing any trade. Whyinvestin cannot guarantee the accuracy of the exchange rates used in the videos. You should confirm current rates before making any transactions that could be affected by changes in the exchange rates. You agree not to copy, modify, reformat, download, store, reproduce, reprocess, transmit or redistribute any data or information found herein or use any such data or information in a commercial enterprise without obtaining prior written consent. Please consult your broker or financial representative to verify pricing before executing any trade. COPYRIGHT “FAIR USE” Whyinvestin doesn’t own any logo different from the whyinvestin’ s logo contained in the video. The owner of the logos is the subject of the video itself (the company); and all the logos are not authorized by, sponsored by, or associated with the trademark owner . Whyinvestin uses exclusive rights held by the copyright owner for Educational purposes and for commentary and criticism as part of a news report or published article. If you are a company, subject of the video and for any reason want to get in contact with Whyinvestin please email: [email protected]
Views: 798 Why Invest In
Short-Term Bond ETFs Draw Investors as Yields Surge (SJNK, SHY)
 
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https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do As yields surge, investors have been flocking to exchange-traded funds (ETFs) providing exposure to short-term bonds. Recently, global bond markets have experienced a sell-off in the aftermath of Donald Trump's surprise victory in the Presidential election. Investors have also been watching inflation expectations closely, and Federal Reserve Bank of Boston President Eric Rosengren said November 15 that the central bank will probably hike benchmark rates in December, according to Dow Jones Business News. (For more, see also: Interest Rates And Your Bond Investments.) While market participants snap up ETFs based on short-term debt, Todd Rosenbluth, director of ETF and Mutual Fund Research at CFRA, wrote a note singling out some specific funds he thinks are worth exploring, according to Barron's. The SPDR Bloomberg Barclays Short-Term High Yield Bond ETF (SJNK) delivered a 5.6% yield at the time of report. Containing speculative-grade bonds, SJNK has a duration of 2.4 years. Investors seeking an ETF with more robust credit quality might consider the iShares Barclays 1-3 Year Treasury Bond Fund (SHY), which provides a 30-day SEC yield of 0.70% and has a duration of 1.9 years. SHY also benefits from high liquidity, as market participants trade more than 2 million shares of this fund every day with a bid/ask spread of a penny. PIMCO Enhanced Short Maturity Strategy Fund ETF (MINT) provide active management for investors looking to do more than simply track an index. MINT, which owns mostly investment-grade corporate bonds from both domestic and foreign businesses, offers a 30-day SEC yield of 1.2% and a duration of 0.26 years. Investors should keep in mind that if the U.S. economic recovery continues, the Federal Reserve will likely keep hiking benchmark interest rates, a development that could have implications for inflation, bond yields and bond prices. (For related reading, see: Will the Fed Raise Rates in 2016? (SPY, VTI).)
Views: 24 ETFs
Review of STHS: Source PIMCO Short-Term High Yield ETF
 
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We review a high-income exchange traded fund, discussing its attributes, its risks and how to find its current yield. We discuss how using short-term bonds and a currency hedge reduces the volatility of this fund.
Views: 570 PensionCraft
3 Bond Funds to Protect Against Rising Interest Rates
 
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When interest rates rise, investors with exposure to longer-term bonds could see their value fall. We explain what can you do to protect against duration risk. Studio Guest: Emma Morgan, Portfolio Manager, Morningstar http://www.morningstar.co.uk -~-~~-~~~-~~-~- Please watch: "Should You Be Worried About the Economy?" https://www.youtube.com/watch?v=WUzqTPeI9IM -~-~~-~~~-~~-~-
Views: 7102 Morningstar UK
Fixed Income High Yield Money Market, CD and Short Term Bonds
 
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Fixed Income High Yield Money Market, CD and Short Term Bonds. Many investors and non investors want to park their money and get the best interest rate and yield. Subscribe to our channel https://youtu.be/Ye2ijkO6LQ4 😃 👍 Thank you for a Thumbs Up Who are we? The Wisdom Investor is all about providing valuable information and education to help you accumulate a nest egg for retirement. People of all ages can benefit from our videos. We want to help you build your financial wealth. You can build your financial wealth by saving, investing and managing your expenses. In addition we cover topics like Social Security, debt, housing, expenses, withdrawing money, health care, tax strategies, exercise and where to live. Website http://www.wisdominvestor.com Planning for Retirement http://www.wisdominvestor.com/weekly.htm Investing ETF Funds http://www.wisdominvestor.com/market.htm Contact [email protected] These People Will Not Get Social Security https://youtu.be/_7V6Xzqum0o 50 Years old and No Money for Retirement https://youtu.be/TL2AOm-qAmM How Much Income with 400,000 Savings? https://youtu.be/bezM82g_ltk $300,000 by 65 How Much Income Will I Have in Retirement? https://youtu.be/LH0ekQDn4o8 $400,000 At 55 Years Old and Retire Early https://youtu.be/jdttmBH9mLA Should I Take Social Security at 62? https://youtu.be/AYiMziBnBis Financial Independence in 12 Years https://youtu.be/C1__3PTRAGA Build a Stream of Income https://youtu.be/Vi_kgQ9NvfQ How to Have More Money https://youtu.be/Vi_kgQ9NvfQ How Much Social Security If I Make $50,000 https://youtu.be/vDtInklwmfM How Much Money to Save For Retirement https://youtu.be/ZOgkLUyZ5kI Will My Income Last During Retirement? https://youtu.be/tIFA_y20Kko Dividend Investing with Stocks and ETF's https://youtu.be/JVOD7zli8uI Expenses During Retirement https://youtu.be/UuYPrW2t39I How to Get Out of Credit Card Debt https://youtu.be/OnL1-lVmMZQ Should I pay off my mortgage? https://youtu.be/vzmPKj2gE_I When to Buy Stocks https://youtu.be/yg09pAwcadU Technical Indicators for Buy Signal - https://youtu.be/9JVokot0-SA
Views: 771 Wisdom Investor
Bond ETFs
 
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iShares Heather Pelant on bond ETFs
Views: 99 National Post
Active Bond ETFs to Help Preserve Your Capital
 
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Jerome M. Schneider, Head of Short-Term Portfolio Management at PIMCO, joined ETF Trends publisher Tom Lydon to discuss short-term bond ETF options that investors and financial advisors can use for capital preservation.
Views: 208 ETF Trends
Fundamentals - iShares Global High Yield Corporate Bond ETF
 
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Russ Mould looks at the mechanics of the iShares Global High Yield Corporate Bond ETF, which tracks the Markit iBoxx Global Developed High Yield Capped index. He also attempts to work out why it is currently proving so popular. The information in this video and transcript is for the use of professional advisers only. The value of investments can go down as well as up and your client may not get back their original investment. Past performance is not a guide to future performance and some investments need to be held for the long term. This promotion does not offer advice about the suitability of our products or services.
Views: 1084 AJ Bell Investcentre
The 3 Largest Short-Term Bond ETFs (BSV, SHY)
 
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https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Short-term bond exchange-traded funds (ETFs) invest in fixed-income securities with maturities between one and five years. These funds are used for a variety of purposes, including superior returns versus money market funds, as temporary deposits for investment capital and as defensive holdings during times of high market volatility. The following were the three largest short-term bond ETFs measured by assets under management (AUM), as of April 25, 2016. The Vanguard Short-Term Bond ETF With AUM of $18.6 billion, the Vanguard Short-Term Bond ETF (NYSEARCA: BSV) is the largest short-term bond ETF. The fund takes a blended approach with its portfolio, mixing Treasurys, investment-grade corporate bonds and dollar-denominated debt from supranational issuers. The fund keeps 89.36% of its portfolio in the United States and diversifies the balance of holdings with small international allocations. For example, the largest holding outside the United States is Canada at 1.52%. The largest sector allocation is Treasurys at 60.24%, followed by industrials at 14.14% and financials at 10.85%. The fund holds debt with maturities ranging from one to five years, giving the portfolio an average weighted maturity of 2.9 years and a duration of 2.7 years. The extension to longer maturities results in the group’s highest distribution yield of 1.33% and slightly higher sensitivity to changes in interest rates. As is common with Vanguard ETFs, the fund had the lowest expense ratio in the group at 0.1%, as well as the narrowest of trading spreads, with an average of 0.01%. The one-year return for BSV is 1.31%. iShares 1-3 Year Credit Bond With a portfolio composed of investment-grade debt from corporate, sovereign and supranational issuers with three-year maximum maturities, the iShares 1-3 Year Credit Bond ETF (NYSEARCA: CSJ) aims to offer a higher distribution yield than comparable all-Treasury funds, but it does have a marginally higher credit risk. The fund maintains 68.89% of its portfolio in the United States and allocates the balance to dollar-denominated international bonds. Canada is the second-largest country holding at 6.05%, followed by the United Kingdom at 5.07%. The largest position is 3.34% allocated to the European Investment Bank, followed by an allocation of 2.79% to KfW Bankengruppe. CSJ has $10.84 billion in AUM and steady average daily volume of $62.76 million, which provides sufficient liquidity for institutional trades. The fund’s average spread of 0.02% and expense ratio of 0.02%, which is less than the average for the category, play essential roles in maximizing total returns. CSJ maintains a short-term exposure with a weighted average maturity of 2.02 years and duration of 1.9, resulting in a distribution yield of 1.03%. The one-year return for the fund is 1.1%. iShares 1-3 Year Treasury Bond Short-term Treasurys, low volatility and AUM of $10.41 billion make the iShares 1-3 Year Treasury Bond (NYSEARCA: SHY) popular with investor
Views: 33 ETFs
A Guide to Long Term Bond ETFs
 
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http://www.profitableinvestingtips.com/investing-trading/a-guide-to-long-term-bond-etfs A Guide to Long Term Bond ETFs In times of economic difficulty, it isn`t always easy to make a profit from investments. Exchange Traded Funds, or ETFs as they are more commonly known, are a popular option because of their similarity to stocks, but with tax advantages and a comparatively low cost. As with any type of investment, it pays to do some research. One type of ETF, which has seen a rise in its popularity in recent times, is the Bond ETF. This is a type of ETF that invests exclusively in bonds, offering a way to trade on the stock market without the ownership of shares. Bond ETFs are much in demand during recessions and periods of economic fragility as they provide investors with a more secure and stable asset for their cash. One of the other major advantages of a Bond ETF is that all types of investor are able to access both the current price as well as the historical data, a unique transparency for the bond market. This level of information is available because the ETF vehicle tracks the stock exchange. However, while they offer a way to enter the bond market without being hampered by such an extreme lack of liquidity, there are some disadvantages. Bond ETFs do not offer any degree of flexibility meaning that an investor is unable to tailor a portfolio to suit individual needs, such as the level of income generated. Bond ETFs can also be expensive as an ongoing management fee is chargeable. However, there are a growing number of Bond ETF providers in the market and some brokers are now offering the chance to invest commission-free. There are similarities between Bond ETFs and actual bonds; both rise in cost as interest rates drop and vice versa. But while a bond will ultimately mature, an ETF will continue to follow the index until the investor decides otherwise. The cost of holding a Bond ETF will be around 0.65% for long-term investments, compared to a typical charge of 1.2% for a bond mutual fund. Calculating the return in real terms for Bond ETFs is rather more complex and in many cases, is at best an estimate rather than an accurate figure. To get an accurate idea of the return, the yield to maturity should be used, not the distribution yield. The latter only takes account of the performance over the previous 12 months while the former takes into account the likely changes and movements in the price and interest rates. To make the calculation even more precise, the management fee should be deducted from the yield to maturity. Bond ETFs also provide an income similar to the coupon on a bond, but it is usually paid on a monthly basis. Bond ETFs are an important part of a portfolio for many investors and having a broker that offers diverse types of trade can help. A platform that offers services including forex news, as well as market information and live prices, can be a real asset for both novice traders as well as more experienced investors. For more insights and useful information about investments and investing, visit www.ProfitableInvestingTips.com. http://youtu.be/ljVoEmZ8ZeQ
Views: 957 InvestingTip
Is It a Bad Idea to Buy Bonds When Interest Rates Are Going Up?
 
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http://IncredibleRetirement.com 800-393-1017 Here’s something I bet you didn't know. The U.S. stock market, the size of the U.S. stock market is about $30 trillion. If you added up the value of all publicly traded stocks in the U.S., the market value of all those companies would come up to around $30 trillion, but what about bonds? Bonds are hardly ever mentioned or talked about in the financial media, but I bet you might be surprised to discover that the U.S. bond market is actually much bigger than the stock market. The U.S. bond market is estimated to be $40 trillion or more. That's right, the bond market is actually larger than the stock market and yet the financial media has almost all their attention and therefore our attention on the stock market. So what about bonds? Should you be buying bonds when interest rates are going up? You may have heard that when interest rates go up, bond values go down, which is true. Think of a seesaw or a teeter totter, the end that goes up is interest rates and the end that goes down is the underlying value of the bond. Bonds by the way are nothing more than a loan to a company or government or government agency. Typically bonds pay their interest twice a year, every six months, and when the loan comes due, they have a maturity date which could range anywhere from 90 days to 30 years, when you get your money back. If you look at long term returns of investments, let's say 15 year timeframe or longer, then it's no secret stocks have outperformed bonds by a large, large margin; so if stocks do better than bonds over the long term why not just have all of your money in stocks? Well the problem is while stocks tend to deliver nice, long term returns, but the short term oh, that could be a whole other story. Stocks on the short term can be extremely volatile. Just look what happened in the financial crisis of 2008. The S&P 500, the 500 largest publically traded companies in America, lost about 38% in value. So $100,000 in the S&P 500 at the end of 2008 was now worth $62,000. Ouch! That's a lot of short term volatility which tends to make you and I uncomfortable, to say the least. So how do we dampen or minimize that volatility? Imagine you have a sailboat and you have entered it into a race. One way to make your sailboat go faster is to make it lighter. But the lighter the sailboat, the more likely it is to capsize with a gust of wind. To prevent that you add weight or ballast to the sailboat. That slows the speed of the boat down but it reduces the odds of the boat capsizing and sinking. This is how you should think of bonds in your overall investment strategy. They are going to slow down the overall growth of your investment accounts but they are there to keep you from capsizing, to keep you from sinking during short-term periods of market volatility. So the answer to the question should you buy bonds, even when interest rates are going up, as a long term investor, the answer is a qualified yes, and here's what I mean by that. If you buy individual bonds and hold the bond until it matures or is called away early by the issuer then you'll receive the interest and get all your money back when the bond matures. The value of the bond can and will fluctuate while you own it, but it doesn't affect you if you hold it to maturity because then you get all your money back. This is why it's important to own individual bonds, especially in a rising interest rate environment, you don't lose money if you hold the bond until maturity. Why not just use a bond mutual fund? The problem with a bond mutual fund is it doesn't have a maturity date. People are constantly adding or withholding money from the mutual fund itself and typically at the wrong time. In a rising interest rate market, a lot of people in bond mutual funds take some or all of their money out of the mutual fund which forces the mutual fund manager to sell bonds even if they didn't want to. They have to generate the money to pay back the investors and that could drive the value or the price of bonds down even further. Ideally, you want to use individual bonds so you know for sure you get your money back when the bond matures. If you have a small account, and I would say a small account would be $200,000 or less, then you may not have enough money to properly diversify into individual bonds and you may have to still use bond mutual funds and if that's the case in a rising interest rate market you want to focus on short term bond funds or floating rate bond funds. Buying individual bonds as part of your investment strategy will help you move one step closer to experiencing your version of an incredible retirement doing what you want, when you want.
Views: 1261 Brian Fricke
4 Popular Short Term Bond ETFs in 2016 (BSV, SHY)
 
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https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Interest rates are on the rise again. It may not happen quickly, but the effect of rising interest rates is often the same, especially with regard to short-term yields, which rise faster than long-term yields. Investing in short-term bond exchange-traded funds (ETFs) can be an excellent way to begin capturing higher yields while providing a hedge against rising interest rates. The objective of short-term bond ETFs is to generate current income while preserving capital, which can make them a viable alternative to low-yielding cash equivalents. Most short-term bond ETFs invest their assets in government bonds or investment-grade debt instruments, or some combination of both, which lowers their risk substantially. The short duration of the underlying securities allows investors to benefit from increasing yields if interest rates continue to rise. As such, investors have been flocking to short-term ETFs in anticipation of rising short-term rates. The three largest short-term bond ETFs have more than $40 billion invested between them. Vanguard Short-Term Bond ETF As of March 8, 2016, the Vanguard Short-Term Bond ETF (NYSEACRA: BSV) has $18.2 billion in assets under management (AUM) with an average daily trading volume (ADTV) of 1.4 million shares. The fund utilizes sampling algorithms to own securities that closely match the composition and performance of the Barclays U.S. 1-5 Year Government /Credit Float Adjusted Index. The fund's current allocation consists of 60% U.S. government and U.S. agency-related bonds, as well as 31% investment-grade corporate bonds. The fund also holds a small number of foreign debt securities, which have maturities between one and five years. The fund’s 12-month yield is 1.31%. It fund has returned 1.65% over the last five years and 1.09% over the last three years, both of which describe category-leading performances. The fund's expense ratio is 0.10%. iShares 1-3 Year Treasury Bond With $12.5 billion in AUM, the iShares 1-3 Year Treasury Bond ETF (NYSEACRA: SHY) is the second-largest short-term bond ETF. The fund's ADTV is 2.2 million shares. It seeks to match its portfolio to the Barclays U.S. 1-3 Year Treasury Bond Index, which consists of public obligations with a maturity of one to three years. As of March 8, 2016, 96% of the fund's assets are invested in U.S. Treasury bonds. As a result, its current yield is lower than short-term bond funds that include corporate bonds in their portfolios. Its 12-month yield is 0.55. The fund’s returns over five and 10 years are 2.34 and 0.69%, respectively. Vanguard Short-Term Corporate Bond ETF As of March 8, 2016, the Vanguard Short-Term Corporate Bond ETF (NASDAQ: VCSH) has $11 billion in AUM, with an ADTV of 1.1 million shares. The fund is designed to match the composition and performance of the Barclays U.S. 1-5 Year Government/Credit Float Adjusted Bond Index, which includes U.S. government and investment-grade corporate bonds. The fund’s current allocation is
Views: 12 ETFs
5 Mistakes Investors Make with ETFs | Fidelity
 
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In this video, learn about the five biggest mistakes that investors make when buying ETFs, or exchange-traded funds. To learn the basics about ETFs, visit https://www.fidelity.com/learning-center/investment-products/etf/overview. To get started investing with ETFs, visit https://www.fidelity.com/etfs/overview To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments --------------------------------------------------------------------------------------------- Let’s talk about the five biggest mistakes investors can make when buying exchange-traded funds. ETFs can be good tools for investors - when used appropriately. But with any investment, there are always things to watch out for. Number 1: Buying the Hot New Thing More than 100 new ETF products launch each year, many of them chasing the latest hot trend. Cloud computing, driverless cars, 3-D printing … you name it, there’s an ETF for that. Buying into the latest hot theme might make you big returns, but take care: These product launches may come after there has been a run up in the market. Buying at the top can be painful on the way down. Number 2: Buying Something You Don’t Understand The only thing worse than chasing the hottest trend is buying something you don’t understand. ETFs have taken institutional strategies and made them push-button-easy for everyday investors to access. Want access to commodity futures? There’s an ETF for that. 300% leverage? 200% short? Interest-rate carry plays? Yes to all. But just because you can buy something easily doesn’t mean you should. All of these funds may be good tools, but only if you know how to use them correctly. Number 3: Thinking All ETFs Are Created Equal Consider China. At the start of 2014, there were more than a dozen broad-based China ETFs. For example, had you chosen PGJ, the PowerShares Golden Dragon China ETF, at the start of the year, you would have lost more than 7% of your money. Had you instead chosen ASHR, the Deutsche Xtrackers Harvest CSI 300 China A-Shares ETF, you would have earned a 51% return. Both are “China ETFs.” Both can provide big, diversified portfolios. But ASHR has significant exposure to Chinese Ashares—largely consumer-focused stocks listed and traded on the domestic Chinese market— which performed spectacularly well in 2014. Don’t assume all ETFs are created equal. Just because two ETFs cover the same market doesn’t mean they provide the same exposure or returns. There’s no guarantee which fund will perform better in the future. But if you wanted to invest last year in the growth of the Chinese consumer and the domestic investor base there, a little bit of research would have gone a long way. Number 4: Trading…Just Because You Can Trading is central to ETFs. It’s right there in the name. But just because you can trade an ETF intraday doesn’t mean you should. Emotions are often an investor’s worst enemy. You zig when you should zag; you sell at the bottom and buy at the top. We all do sometimes. The trouble is ETFs make that even easier than traditional mutual funds. ETFs’ intraday liquidity can be great when you need to get into or out of the market quickly. But those situations are rare. Number 5: Only Using Market Orders When you do invest, consider using a limit order versus a market order. Market orders are instructions to buy or sell securities at the best possible price right now. That can work well for the most liquid ETFs, but as you move beyond the top dozen ETFs, you can find yourself getting trades executed at prices you don’t really want. Using a limit order means you agree to buy an ETF at a certain price or below, and sell it at a certain price or above. A limit order puts the control back in your hands and can help you set the price on your terms. Learn from these common mistakes to help avoid making them yourself. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917 723254.2.0
Views: 203511 Fidelity Investments
The Case for Short-Term Bond Funds Today
 
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What happens to the critical 10-year Treasury yield now that the Fed has begun to trim its balance sheet? Portfolio manager John Queen weighs in and also discusses the role that short-term bond funds can play in a diversified portfolio. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors®, Inc. and sold through unaffiliated intermediaries. Past results are not predictive of results in future periods. CollegeAmerica® is a nationwide plan sponsored by Virginia529℠. Depending on your state of residence, there may be an in-state plan that provides tax and other benefits not available through CollegeAmerica. Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by the distributor of the American Funds mutual funds, which receives fees for distributing and servicing the funds. Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and not to be comprehensive or to provide advice. American Funds and the information contained herein are intended only for persons eligible to purchase U.S.-registered mutual funds. American Funds Distributors, Inc.
Views: 679 American Funds
Earn EASY PASSIVE INCOME with Vanguard Index Funds
 
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Start earning easy passive income with Vanguard index funds. Not interested or don't have the time to pick individual stocks? No problem. We'll walk through the best Vanguard ETFs so you can start investing in index funds and begin collecting dividends. Subscribe here for more content: http://bit.ly/SubscribeMichaelJay Check out my latest video: http://bit.ly/NewVideosMichaelJay In this video we will discuss the best Vanguard ETFs you can use to build a simple portfolio of index funds. We will cover which Vanguard index fund may be the best for you. The funds discussed include: Vanguard Total Stock Market ETF (VTI) This fund is designed to provide investors with exposure to the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks. The fund’s key attributes are its low costs, broad diversification, and the potential for tax efficiency. Vanguard Total International Stock ETF (VXUS) This fund offers investors a low cost way to gain equity exposure to both developed and emerging international economies. The fund tracks stock markets all over the globe, with the exception of the United States. Vanguard FTSE Developed Markets ETF (VEA) This index fund provides investors low-cost, diversified exposure to large-, mid-, and small-capitalization companies in developed markets outside of the United States. Vanguard FTSE Emerging Markets ETF (VWO) This fund offers investors a low-cost way to gain equity exposure to emerging markets. The fund invests in stocks of companies located in emerging markets around the world, such as Brazil, Russia, India, Taiwan, and China. Vanguard Total Bond Market ETF (BND) This fund is designed to provide broad exposure to U.S. investment grade bonds. Reflecting this goal, the fund invests about 30% in corporate bonds and 70% in U.S. government bonds of all maturities (short-, intermediate-, and long-term issues). Vanguard Prime Money Market Fund (VMMXX) This fund seeks to provide current income and preserve shareholders’ principal investment by maintaining a share price of $1. As such it is considered one of the most conservative investment options offered by Vanguard. OTHER CONTENT YOU MAY ENJOY BELOW // 2018 YouTube Investor Stock Draft Watch as I and other YouTube investors participate in my 2018 Stock Draft for a cash prize and bragging rights in the investor community! https://youtu.be/SJvZQNqXJzY // Value Stocks I'm Watching Series In this series, we will be focusing on value stocks that appear to offer significant upside for long term investors. https://www.youtube.com/watch?v=xuujRm10u-Q&list=PLNtmr_AnnWdxrbFd9ODrTOn8ie-3hBldP // #10to10Kchallenge Investment Series Want to grow your investment accounts? Join me as I take the #10to10Kchallenge and grow my Robinhood investment account from $10 to $10,000, build a portfolio of value stocks, and document the entire process for you to see! https://www.youtube.com/watch?v=0hAjDu8NZn4&list=PLNtmr_AnnWdyATMMH5B-MAFWqicUb5zFj // Get Started Investing New to investing? Check out my collection of resources to help get you started on the right foot. https://www.youtube.com/watch?v=ysVNNfXeIxE&list=PLNtmr_AnnWdy-zD9dJiH_LSDIXe9RshlV // Open a Free No-Commission Stock Account If you are looking to open a stock trading account to begin investing, I highly recommend starting with Robinhood as they offer free stock trading. Unlike traditional brokers, they do not charge commission on trades or require a minimum account balance. How to get a free stock on Robinhood: https://www.youtube.com/watch?v=y6pFDDeRxrs If you are reading this and haven't subscribed yet, then click the subscribe button and let me know in the comments what videos you would like to see more of! DISCLAIMER: This video is a resource for educational and general informational purposes and do not constitute actual financial advice. No one should make any investment decision without first consulting his or her own financial advisor and/or conducting his or her own research and due diligence. There is no guarantee or other promise as to any results that may be obtained from using this content. Investing of any kind involves risk and your investments may lose value. CREDITS Song: DJ Quads - I Like To Soundcloud Link: https://soundcloud.com/AKA-DJ-QUADS
ICSH - iShares Ultra Short Term Bond ETF ICSH buy or sell Buffett read basic
 
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Buffett said: He saw all the stock earnings I think the final value of the investment does not need to see numbers only need to figure out what the business is doing with the most basic information to determine The following is my finishing out of the super basic Hoping to help you get the most out of all stocks with the fastest time maybe we can leave message to discuss like... 1. ask your question 2. Master! Buy and sell? 3. Share your experience for this stock
Views: 17 Buffett Info
Selezione ETF: Pimco Short Term HY Corporate Bond
 
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Eugenio Benetazzo descrive ed analizza le caratteristiche di Pimco Short Term High Yield Corporate Bond (ETF con distribuzione mensile dei proventi). ISIN: IE00BF8HV600 KIID: http://www.pimcoetfs.com/ ************************************************************** I miei modelli di portafoglio: http://www.eugeniobenetazzo.com/markets ************************************************************* Segui i miei outlook sui mercati finanziari su: http://www.facebook.com/followbenetazzo http://it.linkedin.com/in/followbenetazzo http://www.twitter.com/followbenetazzo
Views: 649 Eugenio Benetazzo
Do Treasury Bond ETFs Deserve a Place in Your Portfolio?
 
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Global growth concerns and low inflation continue to support long term government bonds (TLT, VGLT). ISHARES 20+ YEAR TREASURY BOND ETF: http://www.zacks.com/funds/etf/TLT/profile?cid=cs-youtube-ft-card VANGUARD LONG-TERM GOVMT BOND ETF: http://www.zacks.com/funds/etf/VGLT/profile?cid=cs-youtube-ft-card Follow us on StockTwits: http://stocktwits.com/ZacksResearch Follow us on Twitter: https://twitter.com/ZacksResearch Like us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Views: 1334 ZacksInvestmentNews
Risks in short-term bond funds - May 2010
 
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There is an unexpected risk present in many so-called short-term bond funds, and most investors are completely unaware of it. In this newest video commentary from Moon Capital Management, David Moon explains the situation, speculates about the fund companies' rationale and offers one possible way to test if your fund is among the guilty ones.
Views: 542 mooncapmanagement
Is Now the Time for Short-Term Bonds?
 
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The fixed-income market continues to be plagued by themes such as interest-rate volatility and low levels of global yields. How will you maneuver around the risks inherent in these themes? Pacific Funds Short Duration Income is designed for investors seeking current income with protection against sudden or large interest-rate changes.
Views: 579 Pacific Life
Dave Explains Why He Doesn't Recommend Bonds
 
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Learn to budget, beat debt, & build a legacy. Visit the online store today: https://goo.gl/GjPwhe Subscribe to stay up to date with the latest videos: http://www.youtube.com/user/DaveRamseyShow?sub_confirmation=1 Welcome to The Dave Ramsey Show like you've never seen it before. The show live streams on YouTube M-F 2-5pm ET! Watch Dave live in studio every day and see behind-the-scenes action from Dave's producers. Watch video profiles of debt-free callers and see them call in live from Ramsey Solutions. During breaks, you'll see exclusive content from people like Rachel Cruze, and Chris Hogan, Christy Wright and Chris Brown —as well as all kinds of other video pieces that we'll unveil every day. The Dave Ramsey Show channel will change the way you experience one of the most popular radio shows in the country!
Views: 196486 The Dave Ramsey Show
ETF Flows  Short-Term Corporate Bond ETFs Are Winning Assets (VCSH, BSCI)
 
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https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Short-term corporate bonds have relatively low durations that range between one and five years. As the U.S. Federal Reserve is likely to continue raising interest rates in 2016, short-term corporate bonds may prove to be a better option from a volatility standpoint compared to long-term corporate bonds, since short-term corporate bonds are not as sensitive to interest rate changes. According to the Investment Company Institute, exchange-traded funds (ETFs) amassed about $2 trillion in combined assets at the end of January 2016. Among all types of ETFs, bond funds experienced the largest increase in assets under management (AUM) in January 2016, as a result of capital inflows, capital appreciation and coupon payments. As of March 4, 2016, most of the ETFs in the short-term corporate bond space continued to show large year-to-date (YTD) capital inflows with a few ETFs being an exception, such as the SPDR Barclays Short Term Corporate Bond ETF (NYSEARCA: SCPB) with $94 million YTD capital outflows, the Guggenheim BulletShares 2016 Corporate Bond ETF (NYSEARCA: BSCG) with $49 million YTD capital outflows and the iShares Barclays 1-3 Year Credit Bond Fund ETF (NYSEARCA: CSJ) with YTD capital outflows of $26 million. Vanguard Short-Term Corporate Bond ETF The Vanguard Short-Term Corporate Bond ETF (NASDAQ: VCSH) witnessed YTD capital inflows of $370 million as of March 4, 2016. The fund was created in November 2009 to track the investment results of the Barclays U.S. 1-5 Year Corporate Bond Index, which is composed of investment-grade corporate bonds with maturities ranging between one and five years. The fund gathered $11.5 billion in AUM and had 1,994 bonds in its portfolio. VCSH is heavily tilted toward corporate bonds issued by industrial companies with 54% allocation and financial services firms with 40.4% allocation. The fund's holdings are high-quality securities with average credit ratings of A, average maturities of 2.9 years and average durations of 2.7 years. VCSH has demonstrated a 12-month trailing yield of 1.99% and a 30-day Securities and Exchange Commission (SEC) yield of 2.29%. As of March 17, 2016, the fund has generated a YTD gain of 0.96% and a one-year gain of 1.48%. VCSH showed annual average returns of 1.66% for the three-year period and 2.57% for the five-year period. The fund was one of the lowest-cost ETFs with an expense ratio of 0.10%. Morningstar awarded the fund a five-star overall rating in the short-term bond category. Guggenheim BulletShares 2018 Corporate Bond ETF The Guggenheim BulletShares 2018 Corporate Bond ETF (NYSEARCA: BSCI) experienced YTD capital inflows of $63 million as of March 4, 2016. The ETF was started in March 2012 to track the performance of the NASDAQBulletShares USD Corporate Bond 2018 Index, which represents a held-to-maturity portfolio of investment-grade corporate bonds that produce an average portfolio maturity in the year of 2018. The fund had $834.4 million in AUM and 324 securitie
Views: 32 ETFs
Are You Going Too Short-Term in Your Bond Portfolio?
 
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With the Federal Reserve raising interest rates over the past couple of years, short-term investments like treasury bills and CDs with maturities of under a year or so have become very popular with investors, and rightly so. Investors have gravitated to the part of the market where they can get more yield with less interest rate risk over time. But one of the concerns that we have is that investors may be getting too short-term in their bond portfolios. Kathy Jones explains why in this week’s episode of Bond Market Today. Subscribe to our channel: https://www.youtube.com/charlesschwab Click here for more insights: http://www.schwab.com/insights/ (1118-84TG)
Views: 4749 Charles Schwab
SCPB  SPDR Barclays Short Term Corporate Bond ETF
 
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https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Fixed-income securities, such as short-term corporate bonds, are a paramount aspect of investor portfolios. Corporate bonds allow investors to diversify their equity holdings and reduce the overall volatility while generating income and yield. However, corporate bonds may not be suitable for most investors who wish to generate monthly income. Corporate bond exchange-traded funds (ETFs) generate fluctuating monthly income, can serve as core holdings in an investor's portfolio and may serve as protection when the market is experiencing heightened volatility. The SPDR Barclays Short-Term Corporate Bond ETF (NYSEARCA: SCPB) is a popular and efficient choice for investors who seek exposure to the corporate bond market. What It Tracks SCPB is an ETF providing investors with exposure to corporate bonds with maturities between one to three years. Corporate bonds are debt securities issued by corporations and sold to investors to raise financing for multiple aspects of the corporations, such as debt refinancing, mergers and acquisitions, operations, or expansions. As of July 31, 2015, SCPB has generated an average annualized net asset value return of 1.94% since its inception date, while its benchmark index, the Barclays U.S. 1-3 Year Corporate Bond Index, has generated returns of 2.52% over the same period. SCPB seeks to provide investment results, before fees and expenses, corresponding to the performance of its benchmark index. The Barclays U.S. 1-3 Year Corporate Bond Index is designed to track the performance of the U.S. short-term corporate bond market and is U.S. dollar-denominated. The index includes corporate issues with remaining maturities greater than or equal to one year and less than three years. It includes investment-grade bonds that must be Baa3 or higher based on Moody's credit ratings scale. The component securities included in the index must have face values greater than or equal to $250 million. How It Tracks It To achieve its investment objective, SCPB generally invests at least 80% of its total assets in the debt securities comprising its benchmark index or in securities the fund advisor considers to have similar characteristics to the characteristics of securities included in the index. As of Aug. 13, 2015, SCPB mainly allocates its funds to corporate bonds issued by companies in three sectors and is heavily weighted towards the industrial and finance sector. The fund allocates 48.49% to the industrial sector, 47.17% to the finance sector, 3.94% to the utility sector, 0.28% to cash and 0.12% to U.S. Treasury securities. SCPB has an average annual tracking error of 0.07%, while the tracking error of the asset class median is 0.26. Since the fund passively invests in corporate bonds by sampling the index, which involves approximating the full index rather than holding all securities comprising the index, this may cause the fund to experience tracking errors. SCPB's operation expenses and transaction costs when buying and sel
Views: 13 ETFs
Consider an Alternative Bond ETF Strategy to Limit Interest Rate Risk
 
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The Federal Reserve has tightened its monetary policy as it gradually hikes interest rates to head off a potentially overheating economy. While rising rates can weigh on fixed-income portfolios, bond investors may look to interest rate-hedged exchange traded fund strategies to generate the same level of yields they are accustomed to and limit rate risk. "Fixed income has a much more direct correlation to what's happening with respect to rates, and really 2018 has been a difficult environment for fixed-income investors," Kieran Kirawn, Senior Investment Strategist for ProShares, said at the Charles Schwab IMPACT 2018 conference. Fixed-income investors who are looking for strategies in a rising rate environment could look at specialized strategies designed for hedging against rising rates. For example, the ProShares Investment Grade-Interest Rate Hedged ETF (Cboe: IGHG) and ProShares High Yield Interest Rate Hedged ETF (Cboe: HYHG) are two rate hedged ETF strategies that try to eliminate the rising rate risks. The two rate-hedged bond ETFs achieve their diminished rate-risk status by shorting Treasury notes so that the underlying portfolio shows a near-zero duration – duration is a measure of sensitivity to changes in interest rates, so a zero duration translates to no sensitivity to changes. Read more at https://www.etftrends.com/rising-rates-channel/consider-alternative-bond-etf-strategy-limit-interest-rate-risk/.
Views: 68 ETF Trends
SPDR SSgA Ultra Short Term Bond ETF
 
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VIDEO FINANCIAL REPORTING Why Invest in is the first financial video platform where you can easily search through thousands of videos describing global securities. About The Video: We believe that complex financial data could become more approachable using friendly motion-graphic representation combined with an accurate selection of financial data. To guarantee the most effective information prospective we drew inspiration from Benjamin Graham’s book: “The Intelligent Investor”, a pillar of financial philosophy. For this project any kind of suggestion or critic will be helpful in order to develop and provide the best service as we can. Please visit our site www.whyinvestin.com and leave a massage to us. Thank you and hope you'll enjoy. IMPORTANT INFORMATION - DISCLAIMER THIS VIDEO IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE. This video has been prepared by Whyinvestin (together with its affiliates, “Whyinvestin”) and is not intended to be taken by, and should not be taken by, any individual recipient as investment advice, a recommendation to buy, hold or sell any security, or an offer to sell or a solicitation of offers to purchase any security. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The performance of the companies discussed on this video is not necessarily indicative of the future performances. Investors should consider the content of this video in conjunction with investment reports, financial statements and other disclosures regarding the valuations and performance of the specific companies discussed herein. DO NOT RELY ON ANY OPINIONS, PREDICTIONS OR FORWARD-LOOKING STATEMENTS CONTAINED HEREIN. Certain of the information contained in this video constitutes “forward-looking statements” that are inherently unreliable and actual events or results may differ materially from those reflected or contemplated herein. None of Whyinvestin or any of its representatives makes any assurance as to the accuracy of those predictions or forward-looking statements. Whyinvestin expressly disclaims any obligation or undertaking to update or revise any such forward-looking statements. EXTERNAL SOURCES. Certain information contained herein has been obtained from third-party sources. Although Whyinvestin believes such sources to be reliable, we make no representation as to its accuracy or completeness. FINANCIAL DATA. Historical and fundamental data, ratios, exchange rate, prices and estimates are provided by Xignite,www.xignite.com. Data are sourced by Morningstar research. Whyinvestin does not verify any data and disclaims any obligation to do so. Whyinvestin, its data or content providers, the financial exchanges and each of their affiliates and business partners (A) expressly disclaim the accuracy, adequacy, or completeness of any data and (B) shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. Neither Whyinvestin nor any of our information providers will be liable for any damages relating to your use of the information provided herein. Please consult your broker or financial representative to verify pricing before executing any trade. Whyinvestin cannot guarantee the accuracy of the exchange rates used in the videos. You should confirm current rates before making any transactions that could be affected by changes in the exchange rates. You agree not to copy, modify, reformat, download, store, reproduce, reprocess, transmit or redistribute any data or information found herein or use any such data or information in a commercial enterprise without obtaining prior written consent. Please consult your broker or financial representative to verify pricing before executing any trade. COPYRIGHT “FAIR USE” Whyinvestin doesn’t own any logo different from the whyinvestin’ s logo contained in the video. The owner of the logos is the subject of the video itself (the company); and all the logos are not authorized by, sponsored by, or associated with the trademark owner . Whyinvestin uses exclusive rights held by the copyright owner for Educational purposes and for commentary and criticism as part of a news report or published article. If you are a company, subject of the video and for any reason want to get in contact with Whyinvestin please email: [email protected]
Views: 20 Why Invest In
This Short-Term Bond Fund Is on Our Radar
 
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Thompson Bond's strong performance, experienced team, patient process, and strong results make it one to watch. For all Morningstar videos: http://www.morningstar.com/cover/videocenter.aspx
Views: 133 Morningstar, Inc.
Guide to Bond ETF's for the Fixed Income Investor
 
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This video introduces ETFs and explains the advantages of using them to invest in bonds. In my opinion ETF's are the best way to get exposure to the bond market.
Are You Invested In Long Term Bonds - Think Twice
 
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Facebook - facebook.com/ebutowskypub/ Twitter - twitter.com/edbutowsky Website Link- edbutowsky.com/ Ed Butowsky, top wealth manager in Dallas and managing partner of Chapwood Investment, LLC, discusses the bond market and why you should understand before investing in long term bonds. bond market, long term bonds, market, stock market, stock performance, Financial Advisor, Wealth Manager, Portfolio, Corporate Valuation, investment portfolio, financial advisor, ed butowsky financial advisor, portfolio, investments, money, evaluate your financial advisor, fox business financial advisor, ed, butowsky
Views: 12283 Ed Butowsky
Corporate Bond ETFs to Date  2016 Performance Review (CLY, LWC)
 
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https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Three months into 2016, corporate bond exchange-traded funds (ETFs) are still giving investors what they need – a high-yield alternative in a low interest rate environment, and a degree of stability during a period of uncertainty in the stock market. Funds investing in investment-grade corporate bonds were mostly on the plus side year to date (YTD), with the category average up 2.59%, as of March 24, 2016. As expected, funds with longer average maturities are outperforming funds with shorter average maturities. However, shorter maturity funds are providing the stability and competitive short-term yields many investors are looking for. The largest long-term corporate bond ETF with more than $26 billion in assets under management (AUM), the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEARCA: LQD), was up 3.7% on the year. The iShares 1-3 Year Credit Bond ETF (NYSEARCA: CSJ) was the largest short-term corporate bond ETF, with $11 billion in AUM, and it was up 0.70%. Short-term corporate bond funds are considered an ideal option during periods of rising interest rates because bonds with short maturities are rotated out for bonds with higher coupon rates. If interest rates rise as expected, short-term corporate ETFs should be a good option for investors seeking higher yields on their short-term money. Long-term corporate bond ETFs should continue to perform well, as long as interest rates don't tick up too quickly and the stock market continues to display uncertainty. The Best Performing Corporate Bond ETFs YTD in 2016 The iShares 10+ Year Credit Bond ETF (NYSEARCA: CLY) was leading the category YTD with a gain of 6.51%. The fund's objective is to replicate the performance of the Barclays U.S. Long Credit Index by investing in investment-grade U.S. corporate and U.S. government bonds with remaining maturities of more than 10 years. As of March 24, 2016, the fund had $847 million invested primarily in investment-grade corporate bonds, with smaller allocations of government and municipal bonds. The fund had returned 7.01% over the last five years and 3.76% over the last three years. Its trailing 12-month yield was 4.5%, and its expense ratio was 0.2%. As of March 24, 2016, the SPDR Barclays Long Term Corporate Bond ETF (NYSEARCA: LWC) had returned 5.76%, with a trailing 12-month yield of 4.67%. The fund seeks to track the performance and yield of the Barclays U.S. Long Term Corporate Bond Index, which consists of U.S. corporate bonds with maturities of 10 years or more. The fund had $133.84 million of AUM with 89.63% invested in investment-grade corporate bonds and 9.62% invested in government bonds. Over the last five years, the fund returned 7.14%, and it returned 3.79% over the last three years. The fund's expense ratio, as of March 2016, was 0.12%. The Worst Performing Corporate Bond ETFs YTD in 2016 The iShares iBonds March 2018 Term Corporate ex-Financials ETF (NYSEARCA: IBCC) had returned -0.15% YTD in 2016. Th
Views: 2 ETFs
A Silver-Rated Vanguard Fund for Long-Term Bond Investors
 
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Vanguard Long-Term Investment-Grade Fund has performed well, but it is one of the most interest-rate-sensitive taxable bond funds. For all Morningstar videos: http://www.morningstar.com/cover/videocenter.aspx
Views: 351 Morningstar, Inc.
Why Cost Matters to ETF Investors
 
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As the ETF industry grows and matures, investors are gravitating toward specific areas of interest and targeted investment strategies "I think what we are already seeing - costs matter. We continue to see that," Susan Thompson, Head of SPDR Americans Distribution for State Street Global Investors, said at Inside ETFs. For example, State Street Global Advisors has a line of dirt-cheap ETFs to provide exposure to a range of core equity and fixed-income asset classes, including: SPDR Portfolio Total Stock Market ETF (NYSEArca: SPTM) 0.03% expense ratio SPDR Portfolio Large Cap ETF (NYSEArca: SPLG) 0.03% expense ratio SPDR Portfolio Mid Cap ETF (NYSEArca: SPMD) 0.05% expense ratio SPDR Portfolio Small Cap ETF (NYSEArca: SPSM) 0.05% expense ratio SPDR Portfolio S&P 500® Growth ETF (NYSEArca: SPYG) 0.04% expense ratio SPDR Portfolio S&P 500 Value ETF (NYSEArca: SPYV) 0.04% expense ratio SPDR Portfolio S&P 500 High Dividend ETF (NYSEArca: SPYD) 0.07% expense ratio SPDR Portfolio World ex-US ETF (NYSEArca: SPDW) 0.04% expense ratio SPDR Portfolio Emerging Markets ETF (NYSEArca: SPEM) 0.11% expense ratio SPDR Portfolio Aggregate Bond ETF (NYSEArca: SPAB) 0.04% expense ratio SPDR Portfolio Long Term Corporate Bond ETF (NYSEArca: SPLB) 0.07% expense ratio SPDR Portfolio Intermediate Term Corporate Bond ETF (NYSEArca: SPIB) 0.07% expense ratio SPDR Portfolio Short Term Corporate Bond ETF (NYSEArca: SPSB) 0.07% expense ratio SPDR Portfolio Long Term Treasury ETF (NYSEArca: SPTL) 0.06% expense ratio SPDR Portfolio Short Term Treasury ETF (NYSEArca: SPTS) 0.06% expense ratio As more investors look to invest, many have become disillusioned with costly active fund strategies, opting to funnel more money into low-cost, passive index-based ETFs.
Views: 57 ETF Trends
BLV Vanguard Long Term Bond ETF BLV buy or sell Buffett read basic
 
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Buffett said: He saw all the stock earnings I think the final value of the investment does not need to see numbers only need to figure out what the business is doing with the most basic information to determine The following is my finishing out of the super basic Hoping to help you get the most out of all stocks with the fastest time maybe we can leave message to discuss like... 1. ask your question 2. Master! Buy and sell? 3. Share your experience for this stock
Views: 61 Buffett Info
The Top 10 High-Grade Bond ETFs for 2016
 
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https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Investment-grade bonds, also known as high grade, are considered to have a very low risk of default on behalf of the issuer. This additional safety helps preserve capital investments but comes at the expense of lower returns than other riskier securities. Investors often use high-grade bonds during times of economic uncertainty or to produce reliable, steady income flows. The following ETFs each comprise portfolios of bonds falling between AAA and AA credit quality, though the maturities and style of debt instruments can vary significantly. Vanguard Short-Term Bond ETF Issuer: Vanguard Assets Under Management (AUM): $17.04 billion 2015 Year-to-Date (YTD) Performance: 1.10% Yield: 1.39% An immensely cheap and liquid ETF, the Vanguard Short-Term Bond Fund (NYSEARCA: BSV) invests in high-grade corporate and international USD-denominated bonds with one- to five-year maturities. Its tracked index is market-value adjusted and tends to have longer maturities than many of its contemporaries, which adds some exposure to interest rate risks. The portfolio is large, with more than 2,100 individual holdings, and trades very easily for both block traders and individual investors. Sixty percent of these holdings are U.S. Treasuries, with significant holdings by industrial and financial institutions as well. Market Vectors Intermediate Municipal Bond ETF Issuer: Van Eck AUM: $1.24 2015 YTD Performance: 2.75% Yield: 2.31% The Market Vectors Intermediate Municipal ETF (NYSEARCA: ITM) is nicely positioned for income investors in 2016 and beyond. The first reason is it is tax-exempt, which is always a plus in the fixed-income space. A second important reason is the slight slant toward shorter maturities than other intermediate-bond ETFs, which depresses interest rate sensitivity. Third, ITM trades with thin spreads and moderate all-in costs. iShares Core U.S. Credit Bond ETF Issuer: BlackRock AUM: $832.52 million 2015 YTD Performance: -0.23% Yield: 3.23% Of all the investment-grade ETFs available to American investors, the iShares Core U.S. Credit Bond ETF (NYSEARCA: CRED) presents the widest swath of possible investment options. Its underlying index, the Barclays U.S. Credit Bond Index, can hold sovereign, local, supranational, international agency and corporate debt. The only qualifiers are that debts be rated as investment grade and be denominated in U.S. dollars. Costs are low and the fund's duration is under seven years, at least as of December 2015. With 2,500 holdings, CRED has an even bulkier portfolio than BSV. Yields are not overly impressive compared to competitive funds, but the international exposure and efficient operations more than counterweight that weakness. iShares National AMT-Free Muni Bond ETF Issuer: BlackRock AUM: $5.74 billion 2015 YTD Performance: 2.05% Yield: 2.52% Another of the numerous high-grade funds from BlackRock, the iShares National AMT-Free Municipal Bond ETF (NYSEARCA: MUB) is a very popular and tax-efficient inv
Views: 6 ETFs
Playing Rising Rates with Ultra-Short Term Bonds
 
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https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do After what seems like an eternity, we may finally be seeing a rate increase on the horizon. The Federal Reserve has been keeping rates artificially low through various bond buying and other stimulus programs as a way to jump start the slow U.S. economy. Those efforts may finally be paying off as several pieces of data have pointed towards a growing economy. Which means a rate increase from the Federal Reserve is probably coming our way sooner than later. For investors, especially those looking at the fixed-income markets, the rate increase could throw a big-time wrench in their plans. But there is a way to temper that risk, by going short on their duration. (For more, see: The Federal Reserve: Introduction.) Go Short, But Not Too Short For the Federal Reserve, the decision to raise rates is becoming easier by the day. According to a group of economists surveyed by news agency Bloomberg, U.S. second quarter actual gross domestic product (GDP) will come in at 2.5% and increase to 3% by the end of the third quarter. Additionally, employers added 280,000 new jobs during May and household spending climbed as well. Those increases were the most in five months and six years, respectively. The numbers should be enough for the Fed begin tightening rates by September. So the long awaited rate hike may finally becoming. The problem is this is a huge issue for any investor in the bond markets looking for income. Bonds have an inverse relationship with regards to interest rates. That means as rates rise, bond prices will fall. That relationship is exacerbated by the length till maturity of the bond. So a 30-year bond will fall by more than a 10- year bond when rates rise. As investors have clamored for yield, they’ve plowed head first into longer dated Treasuries. They could be setting themselves up for a disaster when rates rise. (For more, see: Which Economic Factors Impact Treasury Yields?) On the flipside, cash won’t have any interest rate risks, but there is a few major downsides. First of all, even with a rate hike cash will still be yielding pretty much zero. That’s a negative return when accounting for inflation. PIMCO estimates that investors holding cash have actually lost 0.66% on their investments over the last ten years. Secondly, due to money market fund reform, many funds will be forced to have a variable net asset value (NAV), invest only in swaps and repos and have various liquidity gates. So analysts have postulated that money market funds won’t actually benefit from rising rates immediately like they have historically done. The answer is moving out slightly on the yield curve. Ultra-short duration bonds and bond funds invest in securities with maturities of 180 days to 1.5 years. That seems to be the sweet spot when it comes to getting inflation beating yields as well as protecting from rising interest rates. Typically, ultra-short bond funds invest in securities outside traditional money market funds' fare - longer-term f
Views: 18 ETFs