Vanguard ETF
Known for its index mutual fund, Vanguard has branched out to ETFs (Exchange Traded Funds). Most of the ETFs is also index ETFs or passively managed ETFs. They offer stock ETFs and bond ETFs. Several popular sector ETFs are S&P 500 index ETF, emerging markets ETF, international stock ETF, total bond ETF, corporate bond ETF, etc.One of these index ETFs is Vanguard Total Bond Market ETF (BND). Vanguard also provides an ad for this bond ETF. You can buy this fixed income fund through your brokerage for your investment account or retirement account. Find this index bond fund review below.
You can find the Vanguard’s ad details below:
BND
Vanguard Total Bond Market ETF
Build a balanced foundation that helps meet your clients’ needs
Are you Vanguarding your clients’ portfolios?
There are a lot of investment factors to worry about when you’re trying to keep your clients headed in the right direction. But with the BND ETF, cost won’t be one of them. As a low-cost leader for over 35 years, Vanguard will continue to have options that can help lower risks and lower costs...
All investing is subject to risk, including the possible loss of the money you invest. Bond funds are subject to the risk an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer’s ability to make payments.
To buy or sell Vanguard ETF shares, contact a broker. Usual commissions may apply. An investor may pay more than net asset value when buying and receive less than net asset value when selling.
Bond Fund Review
Vanguard Total Bond Market ETF is an Intermediate-Term Bond ETF. The objective is to keep pace with U.S. bond market returns by investing in U.S. investment-grade market. It offers relatively high potential for investment income. The total net assets are $18.73 billion. The 12-month yield is 2.54%. This top fund also has 0.10% annual expense ratio. The market price is currently traded at premium 0.19% of its NAV.Morningstar analysts rank this fund with 2-stars rating. The benchmark is Spliced Barclays USAgg Float Adj Ix. This best ETF fund has YTD return of 1.41% as of January 31, 2014. The yearly return of the fund since its inception in 2007 is as below:
- Year 2013: -2.10%
- Year 2012: 3.89%
- Year 2011: 7.92%
- Year 2010: 6.20%
- Year 2009: 3.33%
- Year 2008: 7.66%
If you want to buy this bond fund, you can get a free ETF trades through Vanguard or other brokerages which offer free ETFs trading.
Investment Opinion
- This index ETF is suitable as a low core bond ETF for your investment
- With low cost of 0.10% per year, you can maximize your return over long term
- The fund performance is not great, but it will track its index very closely
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