The Days of the 5% APY CD Are Over: Here's Where to Put Your Money Now

Core Insights - In 2023 and 2024, securing a certificate of deposit (CD) with an interest rate of 5% or more was relatively easy due to the Federal Reserve's aggressive interest rate hikes to combat inflation, but current high-interest CDs now offer yields closer to 3% or 4% [1] - The Vanguard Emerging Markets Government Bond ETF (NASDAQ: VWOB) is highlighted as a viable investment option for those seeking to earn 5% or more with minimal risk [2][5] Investment Vehicle Overview - The Vanguard Emerging Markets Government Bond ETF primarily invests in government bonds from emerging market countries, with approximately 14% of its holdings in Saudi Arabian bonds, followed by significant investments in Mexico, Turkey, Indonesia, and the UAE [3] - The ETF currently offers a yield of 5.67% and has a low expense ratio of 0.15%, suggesting that total income rates could exceed 5% annually, although the principal value may fluctuate [4] Market Context - With stock markets historically expensive and CD rates declining, investors are encouraged to explore alternatives for higher yields, making the Vanguard Emerging Markets Government Bond ETF a promising option [5] - The Motley Fool Stock Advisor analyst team has identified other stocks they believe are better investment opportunities than the Vanguard ETF, indicating a competitive investment landscape [6][7]