The post Best Vanguard Bond Funds by Damyan Diamandiev appeared first on Benzinga. Visit Benzinga to get more great content like this.
Over 30 million investors have registered with Vanguard to accomplish their financial goals. Whether you’re saving to buy a new home, secure your retirement or invest for your higher education, Vanguard has the right set of financial products to help you realize your dreams.
Take a look at how investing in Vanguard bond funds can build your wealth in the long run.
Quick Look at the Best Vanguard Bond Funds
- Extended Duration Treasury ETF
- Long-Term Treasury ETF
- Long-Term Bond ETF
- Long-Term Corporate Bond ETF
- Mega Cap Growth ETF
Contents
- Quick Look at the Best Vanguard Bond Funds
- What are Bond Funds?
- Best Vanguard Bond Funds Right Now
- 1. Extended Duration Treasury ETF (NYSEARCA: EDV)
- 2. Long-Term Treasury ETF (NASDAQ: VGLT)
- 3. Long-Term Bond ETF (NYSEARCA: BLV)
- 4. Long-Term Corporate Bond ETF (NASDAQ: VCLT)
- 5. Mega Cap Growth ETF (NYSEARCA: MGK)
- 1. Extended Duration Treasury ETF (NYSEARCA: EDV)
- Best Online Brokers for Bond Funds
- Advantages of Investing in Bond Funds
- Vanguard Bond Funds Provide Dividends and Diversification
What are Bond Funds?
Bond funds are companies that invest heavily in bonds or other types of debt securities. These bond funds can include mutual funds, exchange-traded funds (ETFs), closed-end funds or unit investment trusts.
There are various factors that can impact your earnings from the bond funds such as its risk, return, duration and volatility. Based on the investment goals and policies, a bond fund may increase its investments in a particular type of bond or debt security. These bonds can include government bonds, municipal bonds, corporate bonds, mortgage-backed securities and zero-coupon bonds.
Best Vanguard Bond Funds Right Now
The low expense ratios coupled with its wide range of investment options make Vanguard bond funds a hot pick for investors. You can consider investing in these bond funds from Vanguard to grow your wealth.
1. Extended Duration Treasury ETF (NYSEARCA: EDV)
The Vanguard Ext Duration Treasury ETF has been on the market since 2007. It offers exposure to long-dated U.S. treasury bonds. The ETF tracks the Barclays Capital U.S. Treasury STRIPS with maturities ranging from 20 to 30 years.
EDV has an expense ratio of 0.6% and a dividend yield of 1.9%. The 52-week range is $122.36 to $147.81 and its average daily volume has long exceeded 200,000 shares. EDV has $2.6 billion in assets under management (AUM).
Hypothetical Growth of $10,000
2. Long-Term Treasury ETF (NASDAQ: VGLT)
The Vanguard Long-Term Treasury ETF has been listed on the market since 2009. It offers exposure to long-term U.S. government bonds. This ETF tracks the Barclays U.S. Long Government Index and focuses on U.S. treasuries that mature in 10 years or more.
This ETF has an expense ratio of 0.04% and has an annual dividend yield of $1.80 per share. It has AUM of $6.8 billion. The Vanguard Long-Term Treasury ETF has high liquidity with an average daily trade volume of well over 300,000. This ETF has a 52-week high of $93.51 and a 52-week low of $81.73.
Hypothetical Growth of $10,000
3. Long-Term Bond ETF (NYSEARCA: BLV)
The Vanguard Long-Term Bond ETF has been open to investors since 2007. It offers exposure to all types of bonds with a maturity of 10 years or more. This ETF tracks the Barclays U.S. Long Government/Credit Index.
This ETF has an expense ratio of $0.05% and has an annual dividend yield of $3.45 per share. It has an AUM of $11.6 billion. The Vanguard Long-Term Bond ETF has high liquidity and trades well over 200,000 shares per day. This fund has a 52-week high of $107.39 and a 52-week low of $96.17.
Hypothetical Growth of $10,000
4. Long-Term Corporate Bond ETF (NASDAQ: VCLT)
The Vanguard Long-Term Corporate Bond ETF has been listed on the market since 2009. It offers exposure to investment-grade corporate bonds in the U.S. This ETF tracks the Barclays U.S. Corporate Index and focuses on bonds with a maturity of 10 years or more.
This ETF has an expense ratio of 0.04%. It has a 52-week high of $109.74 and a 52-week low of $98.71. The Vanguard Long-Term Corporate Bond ETF has an AUM of $6.2 billion. It has high liquidity and has an average daily trade volume well over 200,000 shares.
Hypothetical Growth of $10,000
5. Mega Cap Growth ETF (NYSEARCA: MGK)
The Vanguard Mega Cap Growth ETF has been open to trade since 2007. It offers exposure to mega-cap companies within the growth sector of the U.S. economy. This ETF tracks the MSCI U.S. Large Cap Growth Index.
The expense ratio of this ETF is 0.07% and has an annual dividend yield over $1 per share. It has a 52-week high of $264.39 and a 52-week low of $195.19. The Vanguard Mega Cap Growth ETF has high liquidity and trades more than 200,000 shares per day. It has an AUM of $13.9 billion and favorable return rates over 1 year, 3 years and 5 years.
Hypothetical Growth of $10,000
Best Online Brokers for Bond Funds
Bond funds trade similar to stocks and can be bought and sold on major stock exchanges like the NYSE and NASDAQ. The low cost and high trade volume of bond funds can be alluring to new investors and seasoned traders.
Investors gain instant diversification of their portfolio by investing in bond funds. Depending on the type of bond fund you choose to invest in, you can get exposure to multi-class companies in a single trade.
Benzinga has handpicked these top online brokers to get you started.
get started
securely through Magnifi’s
website
Magnifi is an intelligently designed marketplace that allows investors to access data-backed information about various investment opportunities. The company combines standard brokerage tools with artificial intelligence (AI) to promote financial competence. Magnifi distinguishes itself from the crowd by offering an AI-powered search feature and an AI-powered investment assistant. Magnifi offers a technology-forward platform that aims to promote confident and capable long-term financial investments.
Best For
- Long-term investors
- Individuals interested in personalized assistance
- New investors that are eager to learn how to start investing
- Access to an AI-powered investing assistant with a Magnifi Personal account
- Commission-free investing
- Over 15,000 possible investments
- Available mobile application
- Limited methods of communication with customer service
get started
securely through Interactive Broker’s
website
get started
securely through TD Ameritrade’s
website
This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
Best For
- Novice investors
- Retirement savers
- Day traders
- World-class trading platforms
- Detailed research reports and Education Center
- Assets ranging from stocks and ETFs to derivatives like futures and options
- Thinkorswim can be overwhelming to inexperienced traders
- Derivatives trading more costly than some competitors
- Expensive margin rates
get started
securely through Fidelity Investments’s
website
Fidelity is a comprehensive and responsive brokerage suitable for both new and experienced traders alike. With complete access to the full U.S. stock and options markets, a set of state-of-the-art education and research tools, as well as a wide fee-free fund selection, Fidelity is equally useful for the veteran swing traders to novices opening their first accounts. Mobile traders will be especially happy with Fidelity’s app, which mirrors full capabilities of the platform. Though there isn’t much to criticize about Fidelity, the broker does have a few areas where it can afford to improve. Margin rates are significantly higher than most other brokers, especially for traders borrowing less than $25,000. It also doesn’t offer any access to the futures markets. Despite these minor flaws, Fidelity remains a strong choice for most investors.
Best For
- Easy-to-navigate yet functional platform strikes the perfect balance between expert tools and comfort for beginners
- Mobile trading app is fully-optimized and mirrors full functionality of the desktop platform
- Wide range of education and research options make learning more about securities and the market easier and less time-consuming
- Complete range of both independent and managed services available at exceptionally affordable prices
- Offers access to both domestic markets and 25 foreign markets, as well as a wide range of options contracts and over 10,000 mutual funds
- Mobile app that is well-integrated and works just as well as the desktop platform
- Wide selection of education tools and resources available free of charge
- Margin rates higher than many other competing brokerages
- No access to futures trading
- High fees for buying a non-Fidelity mutual fund (with over 3,300 fee-free funds available)
get started
securely through TradeStation’s
website
TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.
Best For
- Advanced traders
- Options and futures traders
- Active stock traders
- Comprehensive trading platform and professional-grade tools
- Wide range of tradable securities
- Fully-operational mobile app
- Confusing pricing structure to leave new traders with a weak understanding of what they pay
- Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
Advantages of Investing in Bond Funds
There are several benefits of investing your money in bond funds. These advantages include:
- Bond funds are professionally managed by investment managers. Investors won’t need to monitor the day-to-day market volatility of their investments.
- Many bond funds are tied to government and corporate entities for long-term periods. The duration of these bond funds can last between 10 to 30 years or more. The extended time on the bond maturity makes it less risky for long-term investors.
- Most bond funds pay their investors regular dividends. These dividends can be distributed to investors monthly, quarterly or annually.
- Bond funds can have holdings in several companies. The diverse range of assets underlying the bond funds can protect investors from losses caused by rapid market swings.
- Shares of bond funds are traded in vast amounts every day on the market. You can buy and sell shares of bond funds commission-free on most online brokers.
Vanguard Bond Funds Provide Dividends and Diversification
Vanguard is among the largest investment companies in the world. It offers a broad selection of low-cost bond funds, mutual funds and ETFs. Vanguard has over $6.2 trillion in global AUM and provides more than 190 U.S. funds as well as 230 additional funds outside the U.S.
Traders seeking to capture a larger share of the market can consider Vanguard bond funds to diversify their stock portfolios. You can also earn regular rewards through consistent dividends by investing in Vanguard bond funds.
Is Vanguard a good company?
Vangaurd is one of the largest investment companies in the world, so yes, it is a good company.
Answer Link
How many funds does Vanguard offer?
Vanguard offers 90 US funds and more than 200 international funds.
Answer Link
Which Vanguard funds are good?
You can look at Benzinga’s recommendations for Vangaurd funds in the list above.
Answer Link
Related content: How to Buy Vanguard Index Funds
The post Best Vanguard Bond Funds by Damyan Diamandiev appeared first on Benzinga. Visit Benzinga to get more great content like this.
