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an hour ago
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AGG Is a Great Choice for Most, but I Like This Vanguard ETF Better
Rising levels of public debt could lead to the tightening of the yield premium of investment-grade corporate bonds over U.S. Treasuries. Corporations will arguably manage debt more responsibly than successive U.S. administrations have proven to be. The Vanguard Total Corporate Bond ETF has outperformed the iShares Core U.S. Aggregate Bond ETF offering in recent years, and risk is rising with the latter. 10 stocks we like better than iShares Trust - iShares Core U.s. Aggregate Bond ETF › The iShares Core U.S. Aggregate Bond ETF (NYSEMKT: AGG) is a suitable option for investors seeking bond exposure in their portfolios. That said, the Vanguard Total Corporate Bond ETF (NASDAQ: VTC) is a better option for long-term investors on a risk/reward basis. Here's why. The stated aim of this ETF is to "track the investment results of an index composed of the total U.S. investment-grade bond market." As such, it holds high-quality debt deemed to have a relatively low default risk. Based on S&P Global's ratings, the ETF currently holds just 12.07% of its funds in BBB-rated bonds (the lowest investment-grade debt rating), with 75.5% in bonds rated AA- or above. As you might expect, and indeed hope for, the majority of this bond ETF's assets are invested in U.S. Treasuries and government-backed mortgages. In short, it's a relatively safe bond ETF with a very low expense ratio of 0.03% and a 30-day SEC yield of 4.45%. It's exactly the sort of bond fund that risk-averse investors might want to include in their portfolio to help balance the rising levels of risk faced by their equity holdings. The Vanguard Total Corporate Bond ETF owns investment-grade corporate debt, but a similar mix of corporate debt to that held by the iShares ETF. Investors buy bonds and often gauge their yields based on a perception of risk. Traditionally, U.S. Treasuries have been considered among the lowest-risk bonds available. After all, the world economy would likely be in very serious trouble if the U.S. defaulted on its debt. That's why other bonds, including the corporate bonds held in the Vanguard Total Corporate Bond ETF, tend to trade at higher yields. Those higher yields reflect their greater default risk. This is why the Vanguard Total Corporate Bond ETF has a 5.24% 30-day SEC yield while iShares ETF has a 30-day SEC yield of only 4.45%. The chart below, which displays their 12-month trailing yields, also illustrates this point. But here's the thing. Given the seemingly ever-rising levels of public debt in the U.S. -- an issue that has been criticized by Elon Musk among others -- and the costs of servicing that debt, investors are entitled to ask who they trust more to demonstrate financial discipline in response to potentially rising interest rates: corporations or the U.S. government? Interest rates on public debt could rise simply due to the ongoing need for more of it to be issued to support rising debt servicing levels and more spending. Meanwhile, increasing public debt may encourage investors to shy away from holding dollar-denominated assets or reduce the weighting of their assets held in dollars. That could be a negative for the value of the U.S. dollar. To be clear, rising U.S. interest rates (Treasury yields) are not good news for corporate America, as they will push corporate bond yields up (and send corporate bond prices down). However, there are a couple of things to bear in mind: Many U.S. corporations are global in scope and earn money internationally, too, so all things being equal, a weakening of the dollar will improve their ability to cover interest payments on dollar-denominated debt. The argument here is about a relative shift in risk; if government debt becomes relatively riskier, all things being equal, corporate debt should become more attractive. To put it succinctly, the spread between the yields on investment-grade corporate debt and public debt will get smaller, and so will the spread between these two ETFs. Indeed, this spread tightening is one reason why the Vanguard ETF has outperformed the iShares ETF in recent years. If you share the view that U.S. public debt is likely to keep rising, then it makes sense to expect the market to price that risk in. If you also share the view that this will lead to investment-grade corporate bonds outperforming, then the Vanguard ETF is a better option. Before you buy stock in iShares Trust - iShares Core U.s. Aggregate Bond ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and iShares Trust - iShares Core U.s. Aggregate Bond ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. AGG Is a Great Choice for Most, but I Like This Vanguard ETF Better was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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15 hours ago
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SPY Adds $4.1B in Assets as Tariff Relief Drives Stock Rally
The SPDR S&P 500 ETF Trust (SPY) pulled in $4.1 billion Thursday, bringing its assets under management to nearly $625 billion, according to data provided by FactSet. The inflows came as the S&P 500 climbed 0.8%, moving within points of its February record high after White House comments eased tariff deadline concerns. The Vanguard Russell 1000 Growth ETF (VONG) attracted $2.6 billion, while the Vanguard Russell 1000 Value ETF (VONV) collected $873.4 million. The Vanguard Value ETF (VTV) pulled in $815.1 million, and the Vanguard Russell 2000 ETF (VTWO) gained $706.5 million. The Vanguard S&P 500 ETF (VOO) saw outflows of $13.8 billion, while the Financial Select Sector SPDR Fund (XLF) lost $292.8 million. The Vanguard Real Estate ETF (VNQ) experienced outflows of just under $276 million. U.S. equity ETFs lost $3.1 billion despite the broad market rally, while U.S. fixed-income ETFs attracted $404.7 million. International equity ETFs pulled in $1.1 billion as geopolitical tensions continued to ease. Overall, ETFs lost $482.3 million for the day. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPY SPDR S&P 500 ETF Trust 4,065.74 624,990.58 0.65% VONG Vanguard Russell 1000 Growth ETF 2,607.38 31,412.23 8.30% VONV Vanguard Russell 1000 Value ETF 873.39 13,246.02 6.59% VTV Vanguard Value ETF 815.08 137,268.97 0.59% VTWO Vanguard Russell 2000 ETF 706.53 13,064.38 5.41% TSLL Direxion Daily TSLA Bull 2X Shares 357.84 6,354.41 5.63% JQUA JPMorgan U.S. Quality Factor ETF 357.62 6,617.36 5.40% SCHF Schwab International Equity ETF 315.65 47,888.30 0.66% VGT Vanguard Information Technology ETF 293.61 92,275.70 0.32% PTIR GraniteShares 2x Long PLTR Daily ETF 243.73 737.68 33.04% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change VOO Vanguard S&P 500 ETF -13,768.65 673,679.87 -2.04% XLF Financial Select Sector SPDR Fund -292.79 48,613.24 -0.60% VNQ Vanguard Real Estate ETF -275.99 33,541.31 -0.82% VGIT Vanguard Intermediate-Term Treasury ETF -184.68 31,731.69 -0.58% TQQQ ProShares UltraPro QQQ -156.88 25,940.80 -0.60% FBL GraniteShares 2x Long META Daily ETF -153.94 153.94 -100.00% TJUL Innovator Equity Defined Protection ETF - 2 Yr to July 2025 -153.24 153.24 -100.00% IJUL Innovator International Developed Power Buffer ETF - July -147.37 147.37 -100.00% XLE Energy Select Sector SPDR Fund -143.59 26,683.81 -0.54% VUG Vanguard Growth ETF -137.84 172,071.83 -0.08% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 17.94 9,999.54 0.18% Asset Allocation 56.15 24,602.08 0.23% Commodities ETFs 207.13 219,902.83 0.09% Currency 209.67 147,643.03 0.14% International Equity 1,118.48 1,842,377.15 0.06% International Fixed Income 201.82 301,161.83 0.07% Inverse 21.57 14,387.49 0.15% Leveraged 419.31 139,644.73 0.30% US Equity -3,139.03 6,980,648.95 -0.04% US Fixed Income 404.65 1,690,685.74 0.02% Total: -482.31 11,371,053.36 0.00%Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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15 hours ago
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SPY Adds $4.1B in Assets as Tariff Relief Drives Stock Rally
The SPDR S&P 500 ETF Trust (SPY) pulled in $4.1 billion Thursday, bringing its assets under management to nearly $625 billion, according to data provided by FactSet. The inflows came as the S&P 500 climbed 0.8%, moving within points of its February record high after White House comments eased tariff deadline concerns. The Vanguard Russell 1000 Growth ETF (VONG) attracted $2.6 billion, while the Vanguard Russell 1000 Value ETF (VONV) collected $873.4 million. The Vanguard Value ETF (VTV) pulled in $815.1 million, and the Vanguard Russell 2000 ETF (VTWO) gained $706.5 million. The Vanguard S&P 500 ETF (VOO) saw outflows of $13.8 billion, while the Financial Select Sector SPDR Fund (XLF) lost $292.8 million. The Vanguard Real Estate ETF (VNQ) experienced outflows of just under $276 million. U.S. equity ETFs lost $3.1 billion despite the broad market rally, while U.S. fixed-income ETFs attracted $404.7 million. International equity ETFs pulled in $1.1 billion as geopolitical tensions continued to ease. Overall, ETFs lost $482.3 million for the day. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPY SPDR S&P 500 ETF Trust 4,065.74 624,990.58 0.65% VONG Vanguard Russell 1000 Growth ETF 2,607.38 31,412.23 8.30% VONV Vanguard Russell 1000 Value ETF 873.39 13,246.02 6.59% VTV Vanguard Value ETF 815.08 137,268.97 0.59% VTWO Vanguard Russell 2000 ETF 706.53 13,064.38 5.41% TSLL Direxion Daily TSLA Bull 2X Shares 357.84 6,354.41 5.63% JQUA JPMorgan U.S. Quality Factor ETF 357.62 6,617.36 5.40% SCHF Schwab International Equity ETF 315.65 47,888.30 0.66% VGT Vanguard Information Technology ETF 293.61 92,275.70 0.32% PTIR GraniteShares 2x Long PLTR Daily ETF 243.73 737.68 33.04% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change VOO Vanguard S&P 500 ETF -13,768.65 673,679.87 -2.04% XLF Financial Select Sector SPDR Fund -292.79 48,613.24 -0.60% VNQ Vanguard Real Estate ETF -275.99 33,541.31 -0.82% VGIT Vanguard Intermediate-Term Treasury ETF -184.68 31,731.69 -0.58% TQQQ ProShares UltraPro QQQ -156.88 25,940.80 -0.60% FBL GraniteShares 2x Long META Daily ETF -153.94 153.94 -100.00% TJUL Innovator Equity Defined Protection ETF - 2 Yr to July 2025 -153.24 153.24 -100.00% IJUL Innovator International Developed Power Buffer ETF - July -147.37 147.37 -100.00% XLE Energy Select Sector SPDR Fund -143.59 26,683.81 -0.54% VUG Vanguard Growth ETF -137.84 172,071.83 -0.08% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 17.94 9,999.54 0.18% Asset Allocation 56.15 24,602.08 0.23% Commodities ETFs 207.13 219,902.83 0.09% Currency 209.67 147,643.03 0.14% International Equity 1,118.48 1,842,377.15 0.06% International Fixed Income 201.82 301,161.83 0.07% Inverse 21.57 14,387.49 0.15% Leveraged 419.31 139,644.73 0.30% US Equity -3,139.03 6,980,648.95 -0.04% US Fixed Income 404.65 1,690,685.74 0.02% Total: -482.31 11,371,053.36 0.00%Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved Sign in to access your portfolio
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16 hours ago
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Takeaways from Day One at the Morningstar Investment Conference
You can find original article here Wealthmanagement. Subscribe to our free daily Wealthmanagement newsletter. The first day of the annual Morningstar Investment Conference in Chicago this week showcased executives from two of the largest asset managers in the nation, providing insights into where the firms see opportunities for growing their business. The day opened with comments from Rick Rieder, managing director, CIO of Global Fixed Income, BlackRock, who sketched out the firm's convictions on the macroeconomy. Rieder conveyed his belief that, long term, robotics and AI would bring about revolutionary changes. In the near term, he predicted the U.S. would land at effective tariff rates at around 15%, which would lead to a burst of short-term inflation that would then level off, in part after the Fed undertakes a series of rate cuts later this year and next year. He also predicted that the U.S. economy, because of its heavy reliance on services rather than manufacturing, would prove resilient to tariff effects and continue to post nominal growth. 'You don't have to take a lot of credit risk,' Rieder said. 'You can be in fixed income at the front end of the curve and throw out a 6% return. It's a golden age not because you can make a lot of money based on interest rates, but because you can compound income above the rate of inflation. You don't have to go down into emerging markets. You can go down the middle and get a lot of yield.' Later in the day, Vanguard CEO Salin Ramji discussed how the firm, famous for its low fees on investment products—what Morningstar has dubbed the 'Vanguard effect'—is looking to provide similar value to investors on savings accounts and financial advice. 'People today get less than 0.5% from banks on savings,' Ramji said. 'We are paying 3.65%. Before someone becomes an investor, they start as a saver, and we want to offer a fair deal on that.' On advice, Vanguard charges 15 basis points for digital advice and 30 basis points for advice with a person. 'There are fewer advisors out there while there's a greater need for advice,' he said. 'Barring a better solution, advice will become the preserve of the wealthy. We want to be able to provide advice to everyday investors.' He pointed to the fact that the average Vanguard investor invests $200,000, but the median was $60,000—those who are traditionally not served by financial advisors. 'When you think about the 'Vanguard effect,' part of what we have been doing is to lower fees and part of it is to introduce more price competition in the industry, which lowers fees for all investors,' he said. 'We are proud of both of those things and want to apply that to different vehicles.' Ramji also provided an update on the firm's partnership with Blackstone and Wellington Management Co. to launch a fund that will invest in public equities, bonds and private markets. 'We're in early days, but we're motivated because we think that private markets done well for the right clients at the right price can be additive to portfolios,' he said. 'But we are also patient and understand that these things take time. We are learning, experimenting and partnering to see how to do it the right way to serve clients well.'
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17 hours ago
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Why Investors Should Be Cautious as ETFs Grow More Complex
As exchange-traded funds push further into niche markets and use derivatives or other complex strategies, financial advisors and investors need to use caution before they buy. Two Morningstar analysts warn investors that there have been a spate of ETF launches that may do more harm than good. Dan Sotiroff, senior manager research analyst for Morningstar, said, in some cases, niche strategies may be worthwhile investments but, 'Increasingly, what we're seeing is appealing to people's worst behaviors, speculation, gaming … ETFs with two-times leverage.' David Carey, manager research analyst for Morningstar, concurred, pointing to examples such as riskier, single-stock or derivatives ETFs, which can get investors in trouble. 'An ETF wrapper doesn't fix a bad strategy,' he said, later adding, 'I think investors still need to be just as cautious about ETFs than they ever have before.' Carey and Sotiroff spoke Wednesday at the Morningstar Investments Conference in Chicago about how ETFs have evolved. Sotiroff said with the big fund-issuers like Vanguard, BlackRock and State Street Global Advisors having launched the basic ETFs investors use, smaller fund companies are looking for ways to get business. 'Increasingly, we're seeing a lot of stuff that Vanguard, BlackRock or State Street won't touch,' he said, adding that many of these sketchy ETFs have maybe a few million in assets, which leaves them at risk of closing. The easy advice, Sotiroff said, is for investors to stick with tried-and-true investments and avoid ETFs if they don't understand the investment process. Carey said the other big trend in ETFs is that active ETFs are here to stay, noting that during the first five months of 2024, 38% of all ETF flows have gone into active ETFs. 'It's not only the asset managers that are saying this from a top-down perspective and just giving clients all these different choices to connect to ETFs. It seems that investors are also more willing to invest,' he said. As investors look at new ETFs, both analysts said they should look closely at the team managing the strategy, see that it's a proven strategy, that the team has the resources to implement it and that they are willing to admit mistakes. Investors should look for managers with experience in several market cycles and processes that are easy to understand and | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
