These Vanguard ETFs Rebounded After Trump's First Days Back in the White House. Should Investors Beware the Bounce?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2025
0mins
Should l Buy BAC?
Source: NASDAQ.COM
Bond Market Reactions: Following Donald Trump's second inauguration, Vanguard bond ETFs initially declined due to concerns about inflation from proposed tariffs but rebounded shortly after his inauguration when no new tariffs were imposed.
Investment Recommendations: Investors are advised to be cautious with long-term bond funds and consider alternatives like the Vanguard Financials ETF, which may benefit from potential deregulation and tax cuts during Trump's presidency.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 49.970
Low
55.00
Averages
61.64
High
71.00
Current: 49.970
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bank of America to Redeem $2.8 Billion Notes
- Redemption Announcement: Bank of America has announced the redemption of $2.8 billion in 1.658% Fixed/Floating Rate Senior Notes on March 11, 2026, at a price equal to 100% of the principal plus accrued interest, demonstrating the company's liquidity management capabilities.
- Interest Cessation: Interest on the notes will cease to accrue on the redemption date, meaning investors will receive their final interest payment, reflecting the company's robust debt management strategy.
- Payment Arrangements: The redemption payment will be made through The Depository Trust Company, with The Bank of New York Mellon Trust Company acting as trustee and paying agent, ensuring a smooth redemption process and enhancing investor confidence.
- Company Overview: As a global leader in financial services, Bank of America serves nearly 70 million clients with approximately 3,600 retail financial centers and 15,000 ATMs, showcasing its strong market presence and influence in the financial services sector.
See More
Galapagos Receives Transparency Notification from Bank of America
- Equity Change Notification: Galapagos received transparency notifications from Bank of America on February 27 and March 2, 2026, indicating that Bank of America and its controlled entity BofA Securities crossed the 5% voting rights threshold on February 26, 2026, highlighting significant interest in the company's equity.
- Shareholding Proportion Change: As of March 2, 2026, Bank of America and its affiliates owned 292,642 voting rights and 3,491,679 equivalent financial instruments, representing a total of 5.74% of Galapagos' current 65,897,071 shares, reflecting their important position in corporate governance.
- Voting Rights Dynamics: On February 27, 2026, BofA Securities fell below the 5% threshold again due to the disposal of financial instruments, demonstrating flexibility and dynamic adjustment in their holding strategy regarding Galapagos.
- Market Impact Analysis: This transparency notification not only reflects Bank of America's investment interest in Galapagos but may also influence market confidence in the company, prompting investors to monitor future changes in shareholding and their potential impact on stock prices.
See More
Surge in Bond Issuance from Hyperscalers
- Market Concerns: According to a recent Bank of America survey, credit investors have identified an AI bubble as their top concern, with expectations of $285 billion in bond issuance from hyperscalers this year, indicating heightened scrutiny on tech investments that could impact investor confidence.
- Increased Capital Expenditures: Major hyperscalers like Alphabet, Amazon, and Oracle are turning to the bond market to finance their significantly increased capital expenditure plans, a shift that may alter market perceptions of their financing strategies and affect their future financial flexibility.
- Market Absorption Capacity: Bob Michele, CIO at JPMorgan, noted that despite rising bond issuance, the market has the capacity to absorb this debt, as historical precedents show that it can differentiate between good and bad borrowers, influencing investor decision-making.
- Investor Strategy Adjustments: Guy LeBas from Janney Montgomery Scott anticipates a 9% to 11% growth in the investment-grade corporate bond market by 2026, suggesting strong ongoing demand for bonds, prompting investors to reassess their portfolios in light of the upcoming debt supply changes.
See More
Coinbase CEO Meets Trump to Push for Crypto Legislation
- High-Level Meeting: Coinbase CEO Brian Armstrong met privately with President Trump at the White House on Tuesday, after which Trump urged banks to make a good deal with the crypto industry on social media, indicating a shared agenda in pushing for crypto legislation.
- Legislative Support: The CLARITY Act mentioned by Trump is reportedly threatened by banks, with Armstrong previously accusing them of stifling competition, highlighting the escalating tension between the crypto sector and traditional banking institutions.
- Market Reaction: Coinbase shares surged over 15% following the news, trading around $209, reflecting market optimism regarding the prospects of crypto legislation, particularly in light of potential growth in stablecoin-related revenues.
- Political Funding: The Fairshake super PAC has raised $190 million for the 2026 midterms, primarily funded by Coinbase, Ripple, and Andreessen Horowitz, indicating the growing political influence of the crypto industry, which may impact the legislative process.
See More
Comparison of LQD and SCHQ Bond ETFs
- Cost and Yield Comparison: SCHQ's expense ratio stands at 0.03%, significantly lower than LQD's 0.14%, while both maintain similar dividend yields of 4.43% and 4.44%, making SCHQ more appealing for cost-conscious investors, particularly those averse to risk.
- Portfolio Risk Analysis: LQD boasts over 3,071 investment-grade corporate bonds with a maximum drawdown of 24.96%, whereas SCHQ's maximum drawdown reaches 46.13%, highlighting LQD's superior volatility management, making it suitable for investors seeking stable returns.
- Long-Term Performance Assessment: As of March 2026, LQD's five-year growth stands at $1,021 compared to SCHQ's $792, indicating LQD's better long-term investment returns despite facing higher credit risk.
- Interest Rate Sensitivity Consideration: SCHQ has an effective duration of 13.8 years, reflecting its high sensitivity to interest rate changes, which could present opportunities for investors amid the Federal Reserve's easing monetary policy, but may also introduce unwanted volatility for those seeking stable income.
See More
Comparison Analysis of iShares Bond ETFs
- Cost and Yield Comparison: The iShares iBoxx Investment Grade Corporate Bond ETF (LQD) has a slightly lower expense ratio of 0.14% compared to the iShares 20-Year Treasury Bond ETF (TLT) at 0.15%, while offering a dividend yield of 4.44%, which is marginally higher than TLT's 4.27%, making LQD more attractive for income-focused investors.
- Risk and Return Analysis: Over the past five years, LQD's maximum drawdown was 24.9%, significantly lower than TLT's 48.3%, indicating that LQD has demonstrated greater resilience during market volatility, appealing to investors seeking lower credit risk.
- Portfolio Composition: LQD holds over 3,071 securities, primarily concentrated in well-known issuers like JPMorgan Chase and Bank of America, ensuring diversity and stability in its portfolio, whereas TLT holds only 46 long-dated Treasury bonds, virtually eliminating credit risk.
- Interest Rate Sensitivity Consideration: Although LQD has outperformed TLT in the past five years, TLT's long-duration bond portfolio may perform better if interest rates decline, prompting investors to weigh LQD's higher yield against TLT's interest rate sensitivity to select the investment strategy that best fits their risk tolerance.
See More
Bank of America to Redeem $2.8 Billion Notes
- Redemption Announcement: Bank of America has announced the redemption of $2.8 billion in 1.658% Fixed/Floating Rate Senior Notes on March 11, 2026, at a price equal to 100% of the principal plus accrued interest, demonstrating the company's liquidity management capabilities.
- Interest Cessation: Interest on the notes will cease to accrue on the redemption date, meaning investors will receive their final interest payment, reflecting the company's robust debt management strategy.
- Payment Arrangements: The redemption payment will be made through The Depository Trust Company, with The Bank of New York Mellon Trust Company acting as trustee and paying agent, ensuring a smooth redemption process and enhancing investor confidence.
- Company Overview: As a global leader in financial services, Bank of America serves nearly 70 million clients with approximately 3,600 retail financial centers and 15,000 ATMs, showcasing its strong market presence and influence in the financial services sector.
See More
Galapagos Receives Transparency Notification from Bank of America
- Equity Change Notification: Galapagos received transparency notifications from Bank of America on February 27 and March 2, 2026, indicating that Bank of America and its controlled entity BofA Securities crossed the 5% voting rights threshold on February 26, 2026, highlighting significant interest in the company's equity.
- Shareholding Proportion Change: As of March 2, 2026, Bank of America and its affiliates owned 292,642 voting rights and 3,491,679 equivalent financial instruments, representing a total of 5.74% of Galapagos' current 65,897,071 shares, reflecting their important position in corporate governance.
- Voting Rights Dynamics: On February 27, 2026, BofA Securities fell below the 5% threshold again due to the disposal of financial instruments, demonstrating flexibility and dynamic adjustment in their holding strategy regarding Galapagos.
- Market Impact Analysis: This transparency notification not only reflects Bank of America's investment interest in Galapagos but may also influence market confidence in the company, prompting investors to monitor future changes in shareholding and their potential impact on stock prices.
See More
Surge in Bond Issuance from Hyperscalers
- Market Concerns: According to a recent Bank of America survey, credit investors have identified an AI bubble as their top concern, with expectations of $285 billion in bond issuance from hyperscalers this year, indicating heightened scrutiny on tech investments that could impact investor confidence.
- Increased Capital Expenditures: Major hyperscalers like Alphabet, Amazon, and Oracle are turning to the bond market to finance their significantly increased capital expenditure plans, a shift that may alter market perceptions of their financing strategies and affect their future financial flexibility.
- Market Absorption Capacity: Bob Michele, CIO at JPMorgan, noted that despite rising bond issuance, the market has the capacity to absorb this debt, as historical precedents show that it can differentiate between good and bad borrowers, influencing investor decision-making.
- Investor Strategy Adjustments: Guy LeBas from Janney Montgomery Scott anticipates a 9% to 11% growth in the investment-grade corporate bond market by 2026, suggesting strong ongoing demand for bonds, prompting investors to reassess their portfolios in light of the upcoming debt supply changes.
See More
Coinbase CEO Meets Trump to Push for Crypto Legislation
- High-Level Meeting: Coinbase CEO Brian Armstrong met privately with President Trump at the White House on Tuesday, after which Trump urged banks to make a good deal with the crypto industry on social media, indicating a shared agenda in pushing for crypto legislation.
- Legislative Support: The CLARITY Act mentioned by Trump is reportedly threatened by banks, with Armstrong previously accusing them of stifling competition, highlighting the escalating tension between the crypto sector and traditional banking institutions.
- Market Reaction: Coinbase shares surged over 15% following the news, trading around $209, reflecting market optimism regarding the prospects of crypto legislation, particularly in light of potential growth in stablecoin-related revenues.
- Political Funding: The Fairshake super PAC has raised $190 million for the 2026 midterms, primarily funded by Coinbase, Ripple, and Andreessen Horowitz, indicating the growing political influence of the crypto industry, which may impact the legislative process.
See More
Comparison of LQD and SCHQ Bond ETFs
- Cost and Yield Comparison: SCHQ's expense ratio stands at 0.03%, significantly lower than LQD's 0.14%, while both maintain similar dividend yields of 4.43% and 4.44%, making SCHQ more appealing for cost-conscious investors, particularly those averse to risk.
- Portfolio Risk Analysis: LQD boasts over 3,071 investment-grade corporate bonds with a maximum drawdown of 24.96%, whereas SCHQ's maximum drawdown reaches 46.13%, highlighting LQD's superior volatility management, making it suitable for investors seeking stable returns.
- Long-Term Performance Assessment: As of March 2026, LQD's five-year growth stands at $1,021 compared to SCHQ's $792, indicating LQD's better long-term investment returns despite facing higher credit risk.
- Interest Rate Sensitivity Consideration: SCHQ has an effective duration of 13.8 years, reflecting its high sensitivity to interest rate changes, which could present opportunities for investors amid the Federal Reserve's easing monetary policy, but may also introduce unwanted volatility for those seeking stable income.
See More
Comparison Analysis of iShares Bond ETFs
- Cost and Yield Comparison: The iShares iBoxx Investment Grade Corporate Bond ETF (LQD) has a slightly lower expense ratio of 0.14% compared to the iShares 20-Year Treasury Bond ETF (TLT) at 0.15%, while offering a dividend yield of 4.44%, which is marginally higher than TLT's 4.27%, making LQD more attractive for income-focused investors.
- Risk and Return Analysis: Over the past five years, LQD's maximum drawdown was 24.9%, significantly lower than TLT's 48.3%, indicating that LQD has demonstrated greater resilience during market volatility, appealing to investors seeking lower credit risk.
- Portfolio Composition: LQD holds over 3,071 securities, primarily concentrated in well-known issuers like JPMorgan Chase and Bank of America, ensuring diversity and stability in its portfolio, whereas TLT holds only 46 long-dated Treasury bonds, virtually eliminating credit risk.
- Interest Rate Sensitivity Consideration: Although LQD has outperformed TLT in the past five years, TLT's long-duration bond portfolio may perform better if interest rates decline, prompting investors to weigh LQD's higher yield against TLT's interest rate sensitivity to select the investment strategy that best fits their risk tolerance.
See More
