Investment Thesis
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 a much higher interest rate risk due to the fact that its portfolio of bonds has a very long average duration to maturity. The ETF offers a safe 3.7%-yielding dividend as it only invests