Desperately Seeking Yield - February 4, 2022

Feb. 05, 2022 5:47 AM ETVNQI, EMLC, IHY, WIP, JNK, TIP, VEA, VNQ, VWO, BND, VTI, PICB, BWX1 Comment
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James Picerno
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Summary

  • The inverse relationship between prices and yields is at least useful. And so it’s been since our last update on trailing yields for the major asset classes via ETF proxies.
  • The range of trailing yields has widened for the underlying fund components, ranging from a low of 0.95% for government bonds in developed markets ex-US (BWX) to a hefty 6.65% for foreign real estate (VNQI).
  • Will prices continue to fall? No one can rule out the possibility, which implies that keeping some degree of cash on the sidelines to take advantage of higher yields down the road is a reasonable strategy.

Coin stacks with letter dice - Yield

Zerbor/iStock via Getty Images

The inverse relationship between prices and yields, if not quite a blessing, is at least useful. And so it’s been since our last update on trailing yields for the major asset classes via ETF proxies. As

Yields

The range of trailing yields has widened for the underlying fund components, ranging from a low of 0.95% for government bonds in developed markets ex-US (

This article was written by

James Picerno profile picture
5.85K Followers
James Picerno is a financial journalist who has been writing about finance and investment theory for more than twenty years. He writes for trade magazines read by financial professionals and financial advisers. Over the years, he’s written for the Wall Street Journal, Barron’s, Bloomberg Markets, Mutual Funds, Modern Maturity, Investment Advisor, Reuters, and his popular finance blog, The CapitalSpectator. Visit: The Capital Spectator (www.capitalspectator.com)

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