Tag Archives: bonds

Where is the market undervalued?

Municipal bonds and emerging markets have not seen the same rally as U.S. stocks and may hold a greater risk premium, Vanguard Chief Economist Joe Davis says.… Read more

Lessons from 2013

Many people spend the final days of each December reminiscing about the year gone by. At this time, it’s not uncommon for individuals to draw “lessons learned” from both the good and bad moments, and to make resolutions for the … Read more

A look back before looking ahead

I learned early in my life that humility is an important virtue regardless of the endeavor. Receiving the occasional B when I had expected an A or enduring a loss when my team was a heavy favorite taught me that … Read more

Municipal debt, Detroit, and diversification

There’s no question that the municipal bond market has been on a roller coaster this year. In July, news of Detroit filing for the largest municipal bankruptcy in history roiled the markets, seeing investors sell municipal bonds and yields on … Read more

Bond risk: A theory of relativity

Risk is a relative term. If someone asked you to set aside $150 a month, possibly with no return on your investment, you’d probably say, “No way!” Yet what if you knew the alternative was losing your home and all … Read more

Give me the simple life

A colleague sent me a link to “The Juggle,” a Wall Street Journal blog that explores “the choices and trade-offs people make as they juggle work and family.”

The topic was financial planning for “people too busy to plan,” and … Read more

The outlook for bonds: Are the good times about to end?

U.S. interest rates today are clearly low and below historical long-term averages. Recalling the double-digit rates of the 1970s and early 1980s, I still find it somewhat astonishing that the yields on a broadly diversified basket of high-quality bonds (whether … Read more

Why I still own Treasuries

Bond funds have generally been on a total return “tear” the past several years, given the sharp decline in U.S. Treasury yields.

Bond fund cash flows have been solid, especially into corporate and municipal bond funds, which tend to carry … Read more

Dividend-paying stocks are not bonds

A popular question from my friends is “Where do I go for income in this low-yield environment?” There isn’t an easy answer.

Here’s why: Yields on money market funds are near 0%, and long-term Treasury bond funds are yielding below … Read more

Interest rates: a worry for 2010

It’s still early in the new year, and there’s lots to worry about in the investment domain and in the broader world. But one item tops my “worry list” for 2010: interest rates. And it’s hard to decide which is … Read more

Visit vanguard.com or contact your broker to obtain a Vanguard ETF or fund prospectus which contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in Creation Unit aggregations. Instead, investors must buy or sell Vanguard ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Investments in bond funds are subject to interest rate, credit, and inflation risk.

Diversification does not ensure a profit or protect against a loss in a declining market.

Foreign investing involves additional risks including currency fluctuations and political uncertainty.

Stocks of companies in emerging markets are generally more risky than stocks of companies in developed countries.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund.

All investing is subject to risk, including possible loss of principal.

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