Core Insights - The conclusion of the Fed's aggressive rate-hiking cycle in 2023 has made fixed income a significant asset class, with three-month Treasury bills yielding over 3.5% [1] - The Vanguard Short-Term Treasury ETF (VGSH) and the Vanguard Total Bond Market ETF (BND) are highlighted as two of the best investment options in the current market [2] Investment Options - VGSH primarily invests in high-quality U.S. Treasury bonds with a dollar-weighted average maturity of one to three years, currently yielding 3.6% [3] - BND provides broad exposure to the investment-grade bond market, including Treasuries, corporate bonds, and mortgage-backed securities, with a current yield of 4.2% [3] Expense Ratios and Coverage - Both VGSH and BND have low expense ratios of 0.03%, characteristic of Vanguard funds, making them top-tier choices in their respective categories [4] Risk Considerations - VGSH serves as an ultra-low-risk income vehicle and can act as a counterbalance to equity price corrections, as Treasuries often have an inverse correlation with stocks [5] - In inflationary environments, such as in 2022, Treasuries may not provide the expected protection, as both stock and bond prices can fall simultaneously [6] Strategic Use - VGSH is considered a defensive, risk-off investment suitable for expectations of a deeper bear market [9] - BND is viewed as a core portfolio allocation for long-term investing, providing traditional asset allocation benefits [10]

Core Viewpoint - The Schwab Long-Term U.S. Treasury ETF (SCHQ) offers a lower expense ratio and gentler drawdowns compared to the iShares 20 Year Treasury Bond ETF (TLT), making it an attractive option for fixed income investors seeking long-dated U.S. government debt exposure [1][4]. Cost Comparison - SCHQ has an expense ratio of 0.03%, significantly lower than TLT's 0.15% [3][4]. - SCHQ provides a slightly higher dividend yield of 4.6% compared to TLT's 4.4% [3]. - The assets under management (AUM) for TLT is $45.2 billion, while SCHQ has $902.5 million [3]. Performance & Risk Analysis - Over the past five years, SCHQ has a max drawdown of -40.88%, which is less severe than TLT's -43.70% [5]. - A $1,000 investment in SCHQ would have grown to $599, compared to $573 for TLT over the same period [5]. - SCHQ exhibits lower volatility with a beta of 0.52, while TLT has a beta of 2.34, indicating greater price volatility relative to the S&P 500 [3]. Portfolio Composition - SCHQ tracks the long-term U.S. Treasury bond market with a portfolio of 98 holdings, providing more diversification than TLT, which holds only 45 positions [6][7]. - Both funds exclusively invest in U.S. Treasury bonds, avoiding corporate or non-Treasury exposure, but TLT's concentration in fewer holdings may increase risk [7]. Market Outlook - Following two Federal Reserve rate cuts in Q4 2026, interest rates may continue to decline, potentially increasing demand for bonds as investors seek to lock in higher yields [9]. - While SCHQ is currently viewed as the better option due to its performance and lower volatility, TLT could outperform if interest rates decline further [10].

Core Viewpoint - First Pacific Financial has increased its stake in TCW Flexible Income ETF, indicating confidence in the fund's performance and strategy [2][6]. Group 1: Transaction Details - On January 16, 2026, First Pacific Financial disclosed the acquisition of 237,585 shares of TCW Flexible Income ETF during the fourth quarter [2]. - Post-transaction, First Pacific Financial holds approximately 2.2 million shares of TCW Flexible Income ETF, valued at $86.2 million, which represents 11.3% of its assets under management (AUM) [8][6]. Group 2: ETF Overview - TCW Flexible Income ETF aims for income and capital growth through an actively managed, globally diversified bond portfolio [5]. - As of January 15, 2026, the ETF's price was $39.68, with a dividend yield of 5.6% and a 1-year total return of 8.5% [4][9]. Group 3: Investment Strategy - The ETF employs a flexible mandate to adjust allocations across various credit qualities, maturities, and geographies, including up to 50% in emerging markets and selective high-yield securities [5]. - TCW Flexible Income ETF has fewer than 1,400 securities compared to the nearly 14,000 in its benchmark, the Bloomberg U.S. Aggregate Bond Index, and has outperformed this benchmark across various periods [7]. Group 4: Portfolio Composition - As of November 30, the ETF had significant allocations in asset-backed securities, commercial mortgage-backed securities, and non-agency mortgage-backed securities, with a 14.5% allocation to high-yield securities, which are not represented in the benchmark [10].

Group 1 - The Value Lab focuses on long-only value investment strategies, aiming to identify mispriced international equities with a target portfolio yield of approximately 4% [1] - The Valkyrie Trading Society is a team of analysts that shares high conviction investment ideas in developed markets, emphasizing downside protection and potential for outsized returns in the current economic climate [2] - The Value Lab provides members with real-time portfolio updates, 24/7 chat support, regular market news reports, feedback on stock ideas, monthly new trades, quarterly earnings write-ups, and daily macroeconomic opinions [2]

Core Insights - BondBloxx Investment Management has experienced significant growth and innovation in 2025, particularly in the fixed income ETF space, marking its first anniversary of the private credit ETF PCMM with industry recognition [1][3] Group 1: Growth and Assets Under Management - Total assets under management (AUM) for BondBloxx's ETFs have more than doubled in 2025, reaching $7.2 billion as of December 17, 2025 [2] - The firm has grown its AUM by over $3.5 billion in 2025, with specific components such as tax-aware ETFs gathering more than $250 million and credit ratings ETFs attracting over $500 million in net inflows [2][7] Group 2: Awards and Recognition - BondBloxx has received multiple awards in 2025, including the Best International Fixed Income ETF Issuer in the ETF Express Awards and recognition as a finalist for Asset Manager of the Year in the Money Management Institute/Barron's Industry Awards [3][7] Group 3: Product Offerings and Market Position - BondBloxx is the first ETF issuer focused solely on fixed income, offering a diverse range of products including U.S. Treasuries, investment-grade and high-yield corporate bonds, emerging market bonds, tax-aware strategies, and private credit [5] - The suite of U.S. Treasury ETFs has reached a three-year anniversary, collectively standing at over $4 billion in assets, while the BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF has gathered more than $700 million in assets [7]

Core Insights - Apella Capital sold 219,555 shares of the Vanguard Total International Bond ETF (BNDX) for approximately $10.8 million in Q3, reducing its position in the ETF [1][2][6] - Post-transaction, Apella Capital holds nearly 1.2 million shares of BNDX, which now constitutes 1.3% of its $4.5 billion in reportable U.S. equity assets [2][3] ETF Overview - The current price of BNDX is $49.83, showing a slight decline of 0.3% over the past year [3][4] - BNDX provides exposure to non-U.S. investment-grade bonds, allowing investors to diversify their fixed income allocations beyond domestic markets [5][8] Investment Strategy - BNDX aims to track the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged), focusing on global investment-grade, fixed-rate debt securities [8][9] - The ETF is designed for both institutional and retail investors seeking diversified international bond exposure with currency risk management [8][9] Market Trends - Apella Capital's decision to reduce its stake in BNDX while concurrently purchasing the domestic-focused Vanguard Total Bond Market ETF (BND) indicates a strategic shift towards U.S. fixed income, likely due to higher yields and better policy visibility in the U.S. [6][10] - This adjustment reflects a broader trend among advisors prioritizing stability, income, and liquidity in a high-rate environment [10]

Core Insights - The article discusses the evolving landscape of bond ETFs, highlighting three unique options that diverge from traditional index bond funds [1] Group 1: Janice Henderson CLA AA ETF (J AAA) - This ETF focuses on collateralized loan obligations (CLOs), which are actively managed diversified pools of non-investment grade bank loans [2] - The ETF invests at least 90% of its assets in AAA rated CLO trenches, ensuring a strong risk management approach [3] - It has achieved a trailing 12-month yield of 5.8%, outperforming the category average of 4.7% [4] Group 2: Vanguard Total International Bond ETF (BNDX) - This ETF is a passive international bond fund that limits exposure to Chinese bonds to avoid transaction costs and operational challenges [6][7] - Despite the cap on Chinese bonds, it has outperformed its category average by 24 basis points annualized since its inception in 2013 [8] - The ETF's strategy has provided superior protection during periods of credit market stress [8] Group 3: PGM Short Duration Multi-Sector Bond ETF (PSDM) - This ETF spans multiple sectors and aims to outperform its benchmark, taking on more credit risk than most peers [9][10] - It has demonstrated strong performance through its mutual fund sibling, which ranked in the top quartile of its category over the trailing 10 years ending July 2025 [11] - The ETF's higher volatility is justified by superior risk-adjusted returns, as measured by the Sharpe ratio [12]

Group 1 - The Conservative Income Portfolio focuses on value stocks with high margins of safety and aims to reduce volatility through well-priced options [1][3] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - The Covered Calls Portfolio aims for lower volatility income investing with an emphasis on capital preservation [2][3] Group 2 - Trapping Value is a team of analysts with over 40 years of combined experience in generating options income and capital preservation [3] - The investment group operates in partnership with Preferred Stock Trader, offering two income-generating portfolios and a bond ladder [3]

Group 1 - The Conservative Income Portfolio aims to target the best value stocks with high margins of safety while reducing volatility through well-priced options [1][2] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Trapping Value provides Covered Calls, focusing on lower volatility income investing and capital preservation, while the Fixed Income Portfolio emphasizes high income potential and significant undervaluation [1][2] Group 2 - Trapping Value consists of a team of analysts with over 40 years of combined experience in generating options income and capital preservation [2] - The investing group operates the Conservative Income Portfolio in collaboration with Preferred Stock Trader, featuring two income-generating portfolios and a bond ladder [2]

Group 1 - The Conservative Income Portfolio targets value stocks with high margins of safety and aims to reduce volatility through well-priced options [1][3] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Trapping Value, with over 40 years of combined experience, focuses on generating options income and capital preservation [3] Group 2 - The Covered Calls Portfolio aims for lower volatility income investing with a focus on capital preservation [2] - The fixed income portfolio emphasizes purchasing securities with high income potential and significant undervaluation compared to peers [2]