BLV - Vanguard Long-Term Bond ETF: Upside May Be Limited As The Market Has Likely Factored In A Few Rate Cuts Already
ETF Overview
Vanguard Long-Term Bond ETF (BLV) focuses on long-term investment grade bonds in the United States. The ETF tracks the Bloomberg Barclays U.S. Long Government/Credit Float Adjusted Index. BLV has very low credit risk as all of the bonds in its portfolio are investment grade bonds. Hence, it offers investors good protection in an economic downturn. Unfortunately, the fund has considerable interest rate risk given its portfolio’s long average duration to maturity. Given the fact that the market has already priced in a few rate cuts, and the U.S. economy is still