They may cut your COVID volatility

Article Excerpt

Even in COVID-19 times, conservative ETF investors looking for current income are best off buying funds that hold high-quality dividend-paying stocks. Stock ETFs can provide not just dividend income, but also capital growth over time. However, bond ETFs can also play a role in your portfolio, especially if you plan to take money out of your portfolio within, say, a couple of years or so and can’t risk stock-market losses. And, of course, bonds do tend to make your portfolio less volatile. The supplements starting on page 59 provide you with more information on the role that fixed-income investments can play in a balanced portfolio. We also offer you a comparison of the yields and risks associated with different types of income-producing investments. But, first, below, we highlight two popular bond ETFs for those seeking them out. VANGUARD INTERMEDIATE-TERM TREASURY ETF $70.31 (New York symbol VGIT; TSINetwork ETF Rating Conservative; Market cap: $9.9 billion) lets you tap U.S. government-issued bonds with an intermediate-term to maturity. More…