You might remember the gameshow “Name That Tune.” Contestants work to guess a song based on as few notes as possible. As it turns out, I’ve been doing something akin to that with an increasing chunk of my overall portfolio. And despite my own initial disbelief, the longer the stock market continues to trade like one big risk-on, risk-off investment, the more I believe that for many, two exchange-traded funds (ETFs) is all it takes. Every investor should have a “core” and “anchor” that keeps them stable a ...

Core Viewpoint - Hershey Financial Advisers has completely exited its position in the VanEck Fallen Angel High Yield Bond ETF, selling 132,906 shares in the fourth quarter, valued at approximately $3.95 million [1][2]. ETF Overview - The VanEck Fallen Angel High Yield Bond ETF has assets under management (AUM) of $3.1 billion and a current price of $29.71 as of February 18, 2026 [4][11]. - The ETF offers a trailing twelve-month (TTM) yield of 6.14% and a one-year total return of 8% [4][11]. - The ETF targets U.S. dollar-denominated corporate bonds that were downgraded from investment grade, focusing on high-yield corporate bonds diversified across sectors [9][11]. Investment Strategy - The ETF employs a rules-based strategy that emphasizes diversification and liquidity, appealing to investors seeking income and credit market opportunities [6]. - The fund is structured as a passively managed exchange-traded fund (ETF) with a transparent approach and an expense ratio of 0.25% [11]. Post-Transaction Insights - Following the sale, the portfolio is heavily weighted towards broad bond exposure and short-duration vehicles, indicating a focus on capital preservation rather than yield maximization [12]. - The decision to exit the fallen angel strategy may reflect a recalibration of high-yield exposure amid tight spreads and normalized returns [10]. Long-Term Considerations - For long-term investors, fallen angels can serve as a middle ground between investment grade and deep junk bonds, though they remain sensitive to credit risks [13]. - Trimming concentrated high-yield exposure in favor of diversified core bonds can be a disciplined strategy for achieving steady income with controlled volatility [13].

Core Viewpoint - The iShares 0-3 Month Treasury Bond ETF (SGOV) has become a favored option for retirees seeking to earn higher yields on cash reserves amidst rising interest rates, providing Treasury Bill exposure with the convenience of an ETF format [2][3]. Group 1: Fund Overview - SGOV operates as a modern cash equivalent, holding ultra-short Treasury securities maturing in zero to three months, continuously rolling over its portfolio as bills mature [3]. - The fund has $64.7 billion in assets and a low expense ratio of 0.09%, making it an attractive option for conservative investors [4][5]. - As of mid-December 2025, SGOV yields approximately 3.85% annually, with monthly dividend payments fluctuating based on short-term rates [4][5]. Group 2: Market Context - The Federal Reserve cut interest rates to a range of 3.5% to 3.75% in December 2025, with further cuts projected for 2026, potentially lowering SGOV's yield [5][7]. - Market forecasts suggest rates may settle between 3% and 3.5% in 2026, indicating a trend of declining yields for SGOV as the Fed normalizes policy [7]. Group 3: Performance Metrics - Over the past year, SGOV achieved a price appreciation of 0.38% and delivered approximately 4.2% in dividend income, resulting in a total return of around 4.5% [8]. - The fund's price has remained stable, trading within a narrow range of $100.38 to $100.72 over the past five months, highlighting its minimal volatility [8]. Group 4: Investor Sentiment - Investors have noted SGOV's advantages in terms of liquidity and shorter-term exposure compared to other fixed income alternatives, making it a favorable choice for retirement planning [9].

Core Insights - Inflation remains a significant threat to wealth accumulation for investors, compounded by stock market volatility and economic uncertainty [2][6] - To hedge against inflation, investors are encouraged to allocate a portion of their portfolio to tangible assets, commodities, and precious metals [2] - Bonds, particularly Treasury Inflation-Protected Securities (TIPS), are highlighted as important inflation-hedging vehicles [3][4] Group 1: Inflation and Investment Strategies - Despite improvements in inflation, it continues to pose risks to investors' purchasing power [2] - A diversified portfolio that includes real estate, commodities, and precious metals can serve as a hedge against inflation [2] - Exchange-traded funds (ETFs) provide an accessible way to invest in bonds, offering diversification and low fees [3] Group 2: TIPS and ETFs - TIPS adjust their principal value and interest payments in response to rising inflation, making them a reliable option for inflation protection [4] - The iShares TIPS Bond ETF (TIP) is a prominent fund with approximately $15 billion in assets and high liquidity, making it attractive for long-term holding [5] - A selection of ETFs, including TIP, DBC, and BIL, utilize strategies involving TIPS, commodities, or T-Bills to maintain pace with inflation and generate passive income [6]