Bonds in the form of the Vanguard Short-Term Bond ETF (BSV), the Vanguard Intermediate-Term Bond
ETF (BIV), and the Vanguard Long-Term Bond ETF (BLV) also saw significant redemptions.
announced that its First Western Fixed Income Fund received a 5-Star Overall Morningstar Rating out of 887 US Intermediate-Term Bond
Funds, based on risk-adjusted returns through October 31, 2018.
The USAA Core Intermediate-Term Bond
ETF (UITB), which has a net expense ratio of 40 basis points, has an investment objective that focuses on high current income without undue risk to principal.
SEIs SIIT Core Fixed Income Fund (SCOAX) was ranked #1 Intermediate-Term Bond
fund in its universe of 975 Intermediate-Term Bond
Funds by US News and World Report for the one year period ending January 31, 2017.
Consequently, ETFs are being used as core portfolio building-blocks, with 63% of ETF assets in TDFs distributed across three broad categories: intermediate-term bond
, large blend and foreign large blend.
The intermediate-term bond
fund category garnered the most flows for the fifth month in a row, taking in nearly USD15.0 billion in July.
This has led to a finding by the firm that intermediate-term bond
funds that have a reported yield of 2.25% in today's market conditions, is definitely a reasonable option.
Morningstar Fund Category % Intermediate-Term Bond
38% Foreign Large Blend Equity 34% U.
One other strategy: Establish a separate account with funds earmarked for long-term care, including conservative vehicles such as intermediate-term bond
617-664-4738 Comingled Pool Wellington Management 617-951-5000 Sep Acct Composite Company, LLP INVESCO (NY) Inc 404-892-0896 Comingled Pool JP Morgan Asset Management Currency (SA) Pacific Investment Management Intermediate-Term Bond
(SA) Co LLC Western Asset Management Ultrashort Bond (SA) Company Federated Investors Money Market--Taxable (SA) Federated Investors Money Market--Taxable (SA) Barclays Global Investors NA Large Blend (SA) Barclays Global Investors NA Large Blend (SA) Barclays Global Investors NA Large Blend (SA) Blackrock Financial Management, Intermediate-Term Bond
(SA) Inc AIG Investments Long-Term Bond (SA) State Street Global Advisors Ltd.
The concavity of the yield curve--the level of intermediate-term bond
yields, relative to the average of short- and long-term bond yields--is a good proxy for the level of term premiums.
Category Cumulative Return (1) Annualized Return (2) S & P 500 Index 793.34% 12.22% Small Company Stock Index 538.94% 10.25% Average Equity Fund 62.11% 2.57% Investor (3) Long-term Government Bond 718.05% 11.70% Index Long-term Corporate Bond 659.30% 11.26% Index Intermediate-term Bond
436.40% 9.24% Index Average Fixed Income Fund 120.06% 4.24% Investor Treasury Bills 175.89% 5.49% Inflation 79.80% 3.14% 1.