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How can I know the historical returns for a Vanguard bond fund, disregarding changes in share price?

This question is really about bond funds in general, but Vanguard funds are what I have experience with, so the details of my question and screenshots will be specific to them. But I hope this ...
Brian Rak's user avatar
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1 answer
80 views

If a US tax resident buys some shares in a municipal money fund and sells them shortly after, do they incur any taxes?

If a US tax resident buys some shares in a municipal money fund (e.g., Schwab Municipal Money Fund SWTXX) and sells them shortly after, do they incur any taxes? The municipal money fund is advertised ...
Franck Dernoncourt's user avatar
3 votes
0 answers
383 views

How to buy I bond for child and spouse?

To purchase I bond I followed the steps below: Opened TreasuryDirect account using my SSN and other information. Purchased a I Bond under my registration. Created a new Primary Owner registration ...
LP13's user avatar
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4 votes
1 answer
915 views

How to buy bond index funds only when they are mostly composed by higher interest rate (%) bonds

Vanguard states that their index funds are re-balanced every 4 months or when the management (exceptionally) considers it necessary. I imagine the FED raising rates several times during 2022 and 2023 ...
Martel's user avatar
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1 vote
2 answers
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Are inflation protected bond funds a hedge against rate hikes?

Generally speaking, I'm a buy and hold index fund investor, with a long-term time horizon (20+ years). I currently keep ~12% of my account in intermediate-term bond funds. I don't usually make big ...
MikeyC's user avatar
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2 answers
96 views

When direct bonds investment is better than investment in debt funds?

Some good company (say SBI) bonds have coupon rate of 9%. Q1. Does this imply that we can better invest in such bonds instead of debt funds (which have < 9% returns)? Or should I rephrase: why ...
Mahesha999's user avatar
1 vote
1 answer
227 views

Understanding how bond prices change

I came across following statement regarding Indian debt funds in ValueResearch ebook: The RBI announced retracting ₹2 lakh crore of banking funds through a 14-day reverse-repo operation in January ...
Mahesha999's user avatar
0 votes
1 answer
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How we earn from debt funds?

I was guessing how we earn from debt funds. I know the underlying bonds pay back interest. But I want to know how exactly we earn from debt funds. I know how NAV of the fund increases in decreasing ...
Mahesha999's user avatar
2 votes
0 answers
83 views

Consolidate wealth management / advisors or use multiple?

About 10 years ago, my parents organised a joint account with a financial advisor for me and my sisters, and it was seeded with a lump sum that we all inherited. The advisor is a large "wealth/...
berkeleybross's user avatar
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4 answers
189 views

Does it make sense as a long-term investment to sell Put Options of a Bonds ETF? [closed]

For reasons outside the scope of this question, I'm thinking of selling Put Options of a Bonds ETF. For this to work, there obviously must be a bias for the share price of the ETF to go up long-term. ...
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1 vote
2 answers
233 views

How can a bond fund have a higher current yield than the bonds it contains?

I'm looking for a place to park funds for a 1-3 year period, which rules out stocks. I found SFHY, a short term corporate bond fund, which has a current quoted yield of 4.33% and a "YTD Daily ...
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0 votes
1 answer
132 views

What is the effect of rising interest rates on a Bond Fund?

For Example: Assume you purchase $1,000 of a bond fund. If the bond fund has an average duration of 5 years and general interest rates increase 1% , what is the impact on the value of the bond. What ...
M Pearson's user avatar
3 votes
5 answers
643 views

I need cash. What funds or stocks should I sell?

Context This is a somewhat hypothetical question, but something I need to plan for now-ish. The general advice in Sweden is to keep 3 months of mandatory expenses in a cash buffer with instant payout ...
user1202136's user avatar
1 vote
1 answer
81 views

How is that this UK corporate bond index has gone down during the last month, if the UK interest rates are historically low?

The Bloomberg Barclays GBP Non-Government Float Adjusted Bond has fallen down dramatically during February 2021. However, the UK interest rates are historically low (font: when will interest rates ...
Martel's user avatar
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Inflation linked securities - Euro Government Inflation-Linked big price increase

I find very interesting that Bloomberg Barclays Euro Inflation Linked 10+ (Euro) securities increased their price in the last 6 month with about +4.4%. Looking on the equivalent USD TIPS my increase (...
Ghita's user avatar
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1 answer
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Why is it better to put taxable bonds in tax-exempt accounts?

Resources like this one suggest putting taxable bonds in tax-exempt accounts and equity index funds in taxable accounts. But the expected return of taxable bonds is much lower than that of equity ...
Tag's user avatar
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2 votes
2 answers
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Dividend amounts -- not just yield -- from my bond fund decreased over the past 18 months

Why? I'm not questioning the yield percentage, which I know has dropped; it's the dollar amounts that puzzle me. I'd have expected the price of VWEAX to have risen (it's increased 1.71% in that time ...
RonJohn's user avatar
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1 answer
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How to know if an international bond fund is currency hedged

I want to invest in only international bond funds that are currency hedged. How can I find out if a fund is currency hedged?
Doug Null's user avatar
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3 votes
2 answers
574 views

If a bond index fund's income is re-invested, how can it be a fixed income asset?

Looking at a bond index fund Key Investor Information, I have found this: Income from the Fund will be reinvested and reflected in the price of shares in the Fund I don't fully understand it. As ...
Martel's user avatar
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0 votes
1 answer
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Active Bond Funds - Interest Rate Swaps

I am a long time investor in an active Australian Bond fund (set & forget type of thing) but lately I have been doing a lot of research and I have realised that bond managers use a lot of ...
NewInvestor's user avatar
2 votes
1 answer
600 views

How is a mutual fund and ETF priced?

Is a mutual fund and ETF priced the same way? regardsless of what it contains and if it pays didivends? Is it basically the price of all the assets? or is the demand in the market(as with a stock) ...
user123124's user avatar
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2 votes
2 answers
104 views

Bond Mutual Fund Dividend Dropped Dramatically in Dec Why?

I have owned a medium term bond mutual fund at a large mutual fund company for years without making any new deposits or withdraws and I just reinvest the dividends. Each month it consistently pays a ...
Lance's user avatar
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1 vote
1 answer
91 views

Characterising risks of an corporate/goverment bond ETF's

I have been looking at different conservative investment strategies such as 50/50 "interest fund", "global stock fund" and "the permanent portfolio". As an alternative, I was looking for corporate ...
user123124's user avatar
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0 votes
2 answers
207 views

how to estimate bond ETF price once interest rate changes?

I'm looking at an example bond ETF which track bonds that expire on 2027 which means its for almost 10 years to its intermediate-term bond tracking. I understand that if interest rate would go up, ...
Jas's user avatar
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3 votes
1 answer
146 views

Comparing bank to bond ETF

Let's say I have a bank savings account giving this interest: Rate: 1.736% APY: 1.75% (rate accounting for compounding interest) And there's a bond ETF SCHZ with these rates: TTM: Distribution ...
JoJo's user avatar
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3 votes
2 answers
376 views

Criteria for selecting Bond ETFs

My investments are split between 4 ETFs (US, International, REIT, and bonds). Until recently, bonds were a relatively small part of the portfolio so I didn't put much thought into it and selected a ...
minou's user avatar
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2 votes
3 answers
802 views

Difference between bond fund and bond index fund

What is the difference between a bond fund and a bond index fund? For example, FIJEX is labeled as a normal bond fund with a gross expense ratio of 0.51% and SWSBX is a bond index fund with a much ...
JoJo's user avatar
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7 votes
5 answers
2k views

Are social/responsible stock funds pointless? [duplicate]

The ESG funds are becoming more and more popular. (ESG = Environmental, Social and Governance). But I am wondering if it makes sense for stock funds? If you buy a stock fund, the only consequence is ...
thyme's user avatar
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1 vote
1 answer
205 views

When are bond ETF dividends taxed?

From what I've read, the dividends of bond ETFs (like HYG or JNK) are taxed at the ordinary income tax rate (up to 39.6%). Is this tax withheld before the dividend is paid out to the investor? Or is ...
trade_the_basis's user avatar
1 vote
2 answers
91 views

Effect on Bond asset allocation if Equity markets crash?

Let's say "Tom" allocated a large amount of capital in some fund's (it's TIAA-CREF, actually) bond assets. In our fictional scenario 2 things are going to happen in the next year: The equity markets ...
thanks_in_advance's user avatar
1 vote
0 answers
129 views

HYG vs JNK Capital Gains

How has HYG gone years without paying a capital gains dividend, whereas JNK has paid several? I know avoiding capital gains dividends is good because it reduces the need to pay capital gains taxes, ...
trade_the_basis's user avatar
18 votes
1 answer
3k views

Why does the Morningstar overview of VMMXX say 81% cash?

I was reading about Vanguard's Prime Money Market Fund, VMMXX, whose investments are characterized thusly by Investopedia: The holdings include U.S. Treasury bills (T-bills) with a 24.1% portfolio ...
temporary_user_name's user avatar
6 votes
1 answer
333 views

Does buying bonds individually offer an advantage over bond funds/ETFs in a low interest rate environment because bonds can be held to maturity?

I have heard this argument several times. Today's low-interest rate environment makes it risky to own bond funds/ETF. Investors will be seriously injured when interest rates start rising ...
curious's user avatar
  • 2,175
1 vote
1 answer
81 views

Are all AAA ratings (from various credit rating agencies) equivalent?

I am peeking into holdings of various ultra-short term debt mutual funds (average maturity of bonds should be less than 1 year) and am coming up with AAA ratings of at least three different agencies: ...
Sriram's user avatar
  • 125
3 votes
1 answer
537 views

Pros and cons of bond ETF versus traditional bond mutual fund?

Bond ETFs are easily available on stock exchanges today. Bond mutual funds have been around for a long time. I am not sure which to buy to build an income stream as a fixed-income investor. What are ...
curious's user avatar
  • 2,175
0 votes
3 answers
317 views

How does a bond fund fall in value?

Obviously the bonds will lose value if the issuer defaults, but if there is a stable, predictable number of defaults in the fund's bond holdings, how does a bond fund fall in value? I know that the ...
Daniel Valland's user avatar
1 vote
2 answers
169 views

Where to learn about Trusts and alike?

Sadly I have already gone down the Computer Science route for a degree, however I would like to learn more about Trusts, Funds, Equities etc... for a future career or for personal investments. I have ...
k1308517's user avatar
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1 vote
2 answers
219 views

Why aren't bond mutual funds seeing huge selloffs now? [closed]

Bonds 101 is that when interest rates go up, bond prices go down. Interest rates are generally expected to be rising over the foreseeable future (although it might take a while), which means that ...
David says Reinstate Monica's user avatar
2 votes
1 answer
151 views

Is it wise to invest in bond fund when interest rates are low?

I have 1/3 on my savings in a bond fund. I live in Canada where interest rates are very low. I know that the interest rates can't stay low forever, and I know from basic finance class that bond ...
Kam's user avatar
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5 votes
4 answers
429 views

Should I scale down my 401k?

Today I met with my 401k provider at work. They tend to push certain plans and a schedule that is as follows: Aggressive Fund (100% stocks, 0% bonds) Moderate Fund (50% stocks, 50% bonds) ...
Acumen Simulator's user avatar
6 votes
3 answers
6k views

Does a bond etf drop by the amount of the dividend just like an equity etf

Usually a stock or an equity etf drops by the amount of the dividend on the ex dividend date. Does the same rule apply to a bond fund or bond etf? When a bond etf pays the quarterly dividend because ...
Victor123's user avatar
  • 16k
0 votes
1 answer
80 views

What duration bonds are held by the ETF XBB

I am looking at the bond etf XBB. This ETF mostly holds Canada govt bonds. What I don't understand is what is the duration of these bonds held by the fund?
Victor123's user avatar
  • 16k
0 votes
1 answer
136 views

Why does the Fidelity Canadian Bond Fund have such a high beta? How is it measured?

I am looking at some Canadian bond funds (recommendations welcome) for my RRSP. Relatively safe, and with a dividend yield ~ 3% is good enough. While looking at Fidelity bond funds, I came across this ...
Victor123's user avatar
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0 votes
1 answer
43 views

'When the rising rate cycle gives way to a decline in borrowing costs, bond funds will ...'?

[Source:] Bonds fall in value when rates rise, and this will be reflected in the unit price of bond funds. When the rising rate cycle gives way to a decline in borrowing costs, bond funds will rise in ...
user avatar
0 votes
1 answer
113 views

Always invest in a bond ETF with at least inflation protection?

I abbreviate: inflation-protected bonds = IPB (I choose this term because I don't want to limit this question to US TIPS); yield to maturity = YTM. Whenever deciding to invest in a bond ETF, should ...
user avatar
3 votes
1 answer
897 views

Municipal Bond Fund tax risks?

I am looking at Tax-Exempt Municipal Bond Fund as a hassle free investment option. This is the first time I'm looking to invest outside of a retirement account, and having read up on the process of ...
AaronLS's user avatar
  • 341
3 votes
1 answer
1k views

No maturity, for bonds in ETFs or bond ETFs?

1. User Chris W. Rea answered: When interest rates rise, the market value of 20-year bonds will drop, and drop more than shorter-term bonds would. Your principal is not protected in the short term. ...
user avatar
0 votes
1 answer
91 views

Are Bond funds a good idea [closed]

How should one mitigate losses of last week? I am concerned but tend to move to quickly
user25410's user avatar
8 votes
1 answer
728 views

What happens to the bond ETF when the underlying bond matures

When a bond matures, what happens to the corresponding bond ETF? It still keeps on going as if nothing has happened. How does this work? I guess there is some kind of rolling over happening here, but ...
Victor123's user avatar
  • 16k
4 votes
1 answer
3k views

What are the effects of interest rate changes on long-term bond ETFs?

I realize this question has been asked a bunch of different ways over the years, but I was hoping to get specific opinions on how a Fed interest rate increases will affect long term bond ETFs (i.e.- ...
jay's user avatar
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