Read and review commentaries written by Morningstar experts. These observations and insights are specific to Mutual Funds.
Vanguard Total Bond Market ETF Is Among the Best
by Lan Anh Tran | 2022-08-09 04:00:00
Vanguard Total Bond Market ETF BND is a well-constructed portfolio of investment-grade U.S.-dollar-denominated bonds. The fund's broad scope and low fee should allow it to outperform its Morningstar Category peers over the long run. The fund's more-expensive investor (VBMFX) and admiral (VBTLX) share classes earn Morningstar Analyst Ratings of Bronze and Silver, respectively, while the rest of the share classes receive Gold ratings.The fund tracks the Bloomberg U.S. Aggregate Float Adjusted Index, which captures investment-grade, fixed-rate, taxable U.S. bonds. The index has different minimum size requirements for each type of bond. While it captures a broad swath of the bond market, the index excludes certain types, such as inflation-linked bonds, non-ERISA-eligible commercial mortgage-backed securities, and bonds with equit… Full Story
Do Dividend Stocks Provide Shelter From Recession?
by Amy C. Arnott, CFA | 2022-08-08 04:00:00
If we're not in a recession yet, we may be in one soon. The economic signals are mixed: Gross domestic product growth declined for the second quarter in a row, but employment, industrial production, and consumer spending continued trending up during the first half of 2022. But with the Federal Reserve aggressively hiking interest rates, the possibility of a recession in 2023 is a key worry for many investors. Investors concerned about an economic slowdown may want to consider adding a stake in dividend-stock funds, which have historically held up relatively well during recessionary periods. In this article, I'll look at whether dividend-paying stocks actually hold up better during periods of economic weakness. I'll also provide some advice on how to use these effectively in a portfolio.Background: The TheoryStocks … Full Story
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1You could lose money by investing in a money market fund.Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so.The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
2You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
3You could lose money by investing in a money market fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
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Mutual Funds: Commentary
Commentary
Read and review commentaries written by Morningstar experts. These observations and insights are specific to Mutual Funds.
Vanguard Total Bond Market ETF Is Among the Best
Do Dividend Stocks Provide Shelter From Recession?
Vanguard Total Bond Market ETF Is Among the Best
Do Dividend Stocks Provide Shelter From Recession?
Weekly Wrap: Tesla's Stock Split, Rising Interest Rates, and Ultrashort Bond Funds
Is Oakmark Fund Still a Good Investment?
Weekly Wrap: Inflation, Bias, and What the Experts Say About a Recession
Look Beyond ESG ETFs' Labels
Fidelity Puritan Fund Gets an Upgrade
Weekly Wrap: Gold, Fast Fashion, and Floating-Rate Funds
The Index Inclusion Effect Isn't Cause for Concern
This Vanguard ETF Is a Great Play on a Rebound in Growth Stocks
3rd Party Research Disclosure /public-22:15:4
Market Data Disclosure