U.S Bonds ETFs
Governments, corporations and municipalities issue bonds when they need capital. A bond pays interest periodically and repays the principal at a stated time, known as maturity. Bonds are categorized by type, maturity, and credit rating. Bonds are vulnerable to inflation as well as changes in interest rates. Rising rates will result in falling bonds prices (and vice-versa).
A bond ETF tracks an index of bonds and tries to replicate its returns. Bond ETFs are a lower-cost alternative to individual bonds, which can be difficult to trade for an individual investor.
The TLT ETF tracks an index of debt issued by the US Treasury with remaining maturities of 20 years or more.
Treasury bonds are debt obligations of a national government. US Treasury bonds, therefore, are debt obligations of the United States government and are issued to finance the national debt of the United States. Investors consider U.S. Treasury bonds to be free of default risk. The Treasury bond market is the most liquid fixed income market in the world.
This ETF is used in the Global Stable, Global Conservative, US Balanced and the US Growth strategy.
The IEF ETF tracks an index of debt issued by the US Treasury with 7-10 years to maturity remaining.
Historically, when stock markets sell off, Treasury bonds have experienced a flight-to-quality and increased in value. The IEF ETF can serve as a portfolio hedge against risk-off periods.
This ETF is used in the Global Stable, Global Conservative and the US Balanced strategy.
The Vanguard Total Bond Market ETF (BND) tracks a broad index of US dollar-denominated, investment-grade, taxable, fixed-income securities with maturities of at least one year. This ETF offers investors broad exposure to the fixed-income market.
This ETF is used in the US Balanced strategy.
The LQD ETF is one of the most popular corporate bond ETFs. It tracks an index of US corporate investment-grade bonds across the maturity spectrum. An investment grade is a rating that signifies a corporate bond presents a relatively low risk of default.
This ETF is used in the Global Stable, Global Conservative and the US Balanced strategy.
The JNK ETF tracks an index of highly liquid, high-yield, US dollar-denominated corporate bonds.
Bonds are rated according to their risk of default. Those with lower ratings have higher risks associated. Due to increased risks, high-yield bonds (also called Junk bonds) return higher yields than most other fixed-income debt securities.
This ETF is used in the Global Stable, Global Conservative and the US Balanced strategy.
A bond ETF tracks an index of bonds and tries to replicate its returns. Bond ETFs are a lower-cost alternative to individual bonds, which can be difficult to trade for an individual investor.
TLT ETF (Long-Term US Treasuries)
The TLT ETF tracks an index of debt issued by the US Treasury with remaining maturities of 20 years or more.
Treasury bonds are debt obligations of a national government. US Treasury bonds, therefore, are debt obligations of the United States government and are issued to finance the national debt of the United States. Investors consider U.S. Treasury bonds to be free of default risk. The Treasury bond market is the most liquid fixed income market in the world.
This ETF is used in the Global Stable, Global Conservative, US Balanced and the US Growth strategy.
IEF ETF (Intermediate-term US Treasuries)
The IEF ETF tracks an index of debt issued by the US Treasury with 7-10 years to maturity remaining.
Historically, when stock markets sell off, Treasury bonds have experienced a flight-to-quality and increased in value. The IEF ETF can serve as a portfolio hedge against risk-off periods.
This ETF is used in the Global Stable, Global Conservative and the US Balanced strategy.
BND ETF (US Total Bond Market)
The Vanguard Total Bond Market ETF (BND) tracks a broad index of US dollar-denominated, investment-grade, taxable, fixed-income securities with maturities of at least one year. This ETF offers investors broad exposure to the fixed-income market.
This ETF is used in the US Balanced strategy.
LQD ETF (US Corporate Bonds)
The LQD ETF is one of the most popular corporate bond ETFs. It tracks an index of US corporate investment-grade bonds across the maturity spectrum. An investment grade is a rating that signifies a corporate bond presents a relatively low risk of default.
This ETF is used in the Global Stable, Global Conservative and the US Balanced strategy.
JNK ETF (High Yield Bonds)
The JNK ETF tracks an index of highly liquid, high-yield, US dollar-denominated corporate bonds.
Bonds are rated according to their risk of default. Those with lower ratings have higher risks associated. Due to increased risks, high-yield bonds (also called Junk bonds) return higher yields than most other fixed-income debt securities.
This ETF is used in the Global Stable, Global Conservative and the US Balanced strategy.