Should I Buy Vanguard Long-Term Bond Fund (BLV)? Finance YouTuber Analysis

The YouTuber suggests BLV as another option for the bond component of a three-fund portfolio. He highlights its 3,000 bond holdings, including corporate bonds for a higher yield, while still maintaining a significant portion in treasuries for safety.

“and the Vanguard Long-Term Bond Fund, the BLV, which holds 3,000 bonds. And while treasuries make up 52% of these here as well, it also holds corporate bonds to give that fund a higher yield.”

The YouTuber suggests BLV for portfolio safety, especially with high stock valuations, noting its 4.7% dividend and new lower 0.03% fee. He explains that the fund holds nearly half its 3,000 bonds in safe US treasuries, with the rest in high-rated corporate bonds. Even a 10-15% allocation to bonds provides crucial safety and cash during stock market downturns.

“Folks having even 10 or 15% of your money in bonds is going to give you that safety and the cash you need when stocks do crash.”

The YouTuber suggests holding the Vanguard Long-Term Bond Fund (BLV) as part of a retirement income strategy. This fund, or similar treasury bonds, provides a fixed interest income and acts as a hedge against stock market crashes, allowing investors to draw income from bonds if stocks fall, giving equities time to recover.

“you want to have about two years worth of expenses in bonds or treasuries you can hold something like the Vanguard long-term bond fund that's the ticker blv which pays a 3.9 yield”

The YouTuber recommends BLV as a core portfolio holding, suggesting 10% allocation. This ETF invests in hundreds of bonds, providing diversification and a 3.3% dividend, contributing to overall portfolio stability.

“maybe you hold another 10 of your money in the Vanguard long-term Bond ETF ticker blv which invests in hundreds of bonds and pays a 3.3 dividend”

The YouTuber suggests buying BLV for safety when the stock market turns, noting its unprecedented 24% drop and current 2.9% dividend yield. He argues that bonds can still provide protection even with rising rates, contrary to popular belief.

“you have some safety and bonds and shares of the vanguard long-term bond etf ticker blv have fallen 24 in less than a year an unprecedented drop the fastest in the fund's history in fact the etf now pays a 2.9 dividend yield and is going to provide you that protection you need when the stock market does turn”

The YouTuber mentions BLV as a long-term bond ETF that invests in hundreds of bonds and pays a 3.3% dividend. However, he implicitly advises against it by stating that 'bonds are going to get hit as interest rates rise, so a lot of bond funds especially the longer term ones like the BLV are getting hit hard and having massive losses.'

“maybe you hold another 10 percent of your money in the vanguard long-term bond etf ticker blv which invests in hundreds of bonds and pays a 3.3 dividend.”

The YouTuber suggests allocating 10% of a portfolio's core to the Vanguard Long-Term Bond ETF (BLV) as part of a diversified core-satellite strategy. This ETF holds hundreds of bonds, pays a 3.3% dividend, and provides diversification and stability.

“maybe you hold another 10 of your money in the vanguard long-term bond etf ticker blv which is going to hold hundreds of bonds and pays a 3.3 dividend”

The YouTuber recommends BLV as a safe investment for a leveraged strategy due to its low volatility (standard deviation of 11), high allocation to US government bonds and investment-grade corporates, and a 5.2% annual total return over five years. He argues it provides a stable base for generating higher returns when combined with margin.

“First is the safest here the vanguard long-term bond fund took her blv with its 2.9 dividend yield and 5.2 percent annual total return over the last five years.”