Vanguard Says: This Bond ETF Could Beat U.S. Stocks for Years
2026-02-17 09:50:00 ET
The U.S. stock market is off to a rocky start in 2026. The S&P 500 index is down 0.1% year to date, while the tech-heavy Nasdaq-100 index is down 2.2%. But one exchange traded fund (ETF) has outperformed them both: The Vanguard Total Bond Market ETF (NASDAQ: BND) is up 0.8% year to date.
Bonds don't usually beat stocks , at least not for long. According to The Deutsche Bank Research Institute's Long-Term Asset Return Study, during the past 100 years, U.S. bonds have never outperformed U.S. stocks over any 25-year time frame.
But if you're feeling nervous about the recent tech stock sell-off, if you want to diversify some of your portfolio away from a few big-name artificial intelligence (AI) stocks, if you want to earn steady income on your investments -- buying bonds could be a good choice.
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