Live Breaking News & Updates on Balanced Index|Page 3
Stay updated with breaking news from Balanced index. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
May 10, 2021 With soaring Treasury yields punishing bond returns, the viability of the classic 60/40 equity/fixed income portfolio is stirring considerable debate. That’s not surprising. If aggregate bonds strategies are struggling against the backdrop of rising 10-year yields, it’s reasonable to expect advisors and, for that matter, clients to question the efficacy of a portfolio that devotes 40% of itself to fixed income. Yet data suggests it’s probably too early to author 60/40 obituaries. “Vanguard Balanced Index (VBAIX), a fund with a strategic 60% allocation to the U.S. total stock market (the CRSP U.S. Total Market Index) and a 40% allocation the U.S. total bond market (the Bloomberg Barclays U.S. Aggregate Bond Index), gained 2.4% for the first quarter of 2021,” writes Morningstar’s Jason Kephart. “That was in line with the fund’s 2.3% median quarterly return since 2000.” ....
It s a weekday. You know what that means. Somewhere, someone is pronouncing the classic balanced portfolio of 60% stocks and 40% bonds dead. Rising interest rates are the predetermined cause of death. Yet, as interest rates surged in the first quarter of 2021 and U.S. Treasuries were routed for their worst quarterly loss, the old-school balanced portfolio s performance was anything but an outlier. Vanguard Balanced Index (VBAIX), a fund with a strategic 60% allocation to the U.S. total stock market (the CRSP U.S. Total Market Index) and a 40% allocation the U.S. total bond market (the Bloomberg Barclays U.S. Aggregate Bond Index), gained 2.4% for the first quarter of 2021. That was in line with the fund s 2.3% median quarterly return since 2000. Exhibit 1 shows a snapshot of the fund s range of quarterly returns over that period. ....
Best Index Funds February 2021: How To Invest gobankingrates.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from gobankingrates.com Daily Mail and Mail on Sunday newspapers.