Localfund.com - All about Fund and Investment
*Home>>>Vanguard Fund

What influence does 30-Year T-Bond Yield have on the Vanguard Total Bond Market Index Fund (VBMFX)?


The 30-Year T-Bond Yield ($TYX on Stockcharts) has been in a downward slide since 1982. If it makes a major turn and begins a 20-year upward move, what would that do to the Vanguard Total Bond Market Index Fund (VBMFX)?

I'm more interested in knowing about how the 30-Year T-Bond Yield would have an influence, not a 5-Year.

If you look at the distribution of bonds in this fund, you will see most of the bonds have a maturity less than 10 years. The movement of the 5 yield treasury note would correlate better with this bond fund. ($FVX))
However, bond rates tend to move together, so if the 30 year bond moves one way, the 5 year bond and the Vanguard fund will usually follow.

Tags
  Venture Investment   Venture Capitalist   Venture Capital   VC Fund   Vanguard Fund   Value Investment   Trust Investment   Stock Investment
Related information
  • When you withdraw money from your vanguard retirement fund how much do they take out?

    Vanguard is required to withhold 20% (and send to the IRS, as a down payment on taxes, (see below)) if you are under 59 1/2 years old. The IRS will collect income taxes on any earnings (estimate...

  • I put $3000 into a Vanguard balanced fund two months ago. It has gone down down down. Should I fret?

    When you invested this money, did you not realize the stock market had it's ups & downs?? Did you really think the stock market moved only one way, steadily upward?? If you are a long ...

  • Is Vanguard LifeStrategy Growth Fund a good 401k option?

    It is a "fund-of-funds" set up to own 80% stocks and 20% bonds. That allocation is more diversified than most funds out there, and diversification in long term investing is generally a g...

  • What particular fund in Vanguard would you consider best, considering the possibility of an economic downturn.

    It's impossible to answer that question without knowing more about your timeframe and risk tolerance.

    ...
  • I'd like opinions on Vanguard's 500 fund.?

    It is ok for that purpose, provided you do not put all of your assets into it. No more than 25%. The reason is that the fund is heavily weighted towards large cap U S stocks. You need to be more...

  • How to buy Vanguard 500 Index fund (VFINX)?

    You could just go to just about any brokerage to buy that fund. But probably cheaper or nothing to just go straight to Vanguard directly. But you can always go to a discount brokerage and buy and...

  • Vanguard Long Term NY Muni Fund?

    Its depends on when you need the money and where its being held IE IRA, taxable account. Of the bond funds I like the ultra low tax funds, if this is long term retirement money I still like stocks...

  • What index fund is better, Vanguard's SP 500 or Etrade's SP 500?

    Vanguard S&P 500. Vanguard has 0% redemption fee, Etrade has 1% Vanguard expense ratio: 0.18%/0.09% for Admiral shares, Etrade 0.09% Vanguard tracking error: 0.05%, Etrade: 0.79% Winner...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster