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ETF Specialist

Bond ETFs Are on Track for a Banner Year

Investors have piled into fixed-income ETFs in 2020.

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Global stocks notched new all-time highs in August 2020. The Morningstar Global Markets Index--a broad gauge of global stock markets--rose 6% during the month. By month-end, the index had rebounded 49% from its late-March low and sat 1.7% above its mid-February peak. The index gained 3.7% through the first eight months of the year. Buoyant stock markets stand in sharp contrast to the lingering economic malaise brought on by the coronavirus.

The Morningstar US Core Bond Index slipped 0.8% in August. Long-term Treasury yields inched higher during the month following the Federal Reserve's announcement of a new policy framework that would allow it to let inflation run above its historical 2% target. This is intended to give the Fed more latitude as it attempts to aid the economic recovery.

Ben Johnson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.