I’m curious as to why my Vanguard bond ETFs are all down. I have the following Vanguard bond ETFs:
Total Bond Market (BND)
Total International Bond Index (BNDX)
Intermediate Term Corporate Bond (VCIT)
Long Term Treasury (VGLT)
Short Term Treasury (VGSH)
These are the funds recommended to me by my financial advisor. I don’t have large positions in any of them yet, and I’m definitely not panicking, but I’m wondering why they’re all down, with the Fed having cut interest rates, with more cuts to come.
Unfortunately, I bought them all in September this year, and their NAVs were all at 1 year (or longer) highs. I understand the basics of individual bonds, and that prices and yields have an inverse relationship, so I would expect the prices of many of the individual bonds in these funds, and consequently the fund's NAVs, to have risen at least a little.
My (speculative and mostly uninformed) guess: The interest rate cuts had already been factored in for weeks, possibly months, and that investors are piling into stocks with the expectation of a surge in that market, rather than buying bonds or bond funds/ETFs???
I would be interested in any thoughts about this. Thanks for reading.
Total Bond Market (BND)
Total International Bond Index (BNDX)
Intermediate Term Corporate Bond (VCIT)
Long Term Treasury (VGLT)
Short Term Treasury (VGSH)
These are the funds recommended to me by my financial advisor. I don’t have large positions in any of them yet, and I’m definitely not panicking, but I’m wondering why they’re all down, with the Fed having cut interest rates, with more cuts to come.
Unfortunately, I bought them all in September this year, and their NAVs were all at 1 year (or longer) highs. I understand the basics of individual bonds, and that prices and yields have an inverse relationship, so I would expect the prices of many of the individual bonds in these funds, and consequently the fund's NAVs, to have risen at least a little.
My (speculative and mostly uninformed) guess: The interest rate cuts had already been factored in for weeks, possibly months, and that investors are piling into stocks with the expectation of a surge in that market, rather than buying bonds or bond funds/ETFs???
I would be interested in any thoughts about this. Thanks for reading.
Statistics: Posted by psychopengy — Sat Oct 05, 2024 8:54 pm — Replies 3 — Views 107
