October’s CPI data showed signs of inflation cooling down. Minutes from the Federal Reserve’s policy meeting released last month showed that the central bank intends to slow down the current pace of rate hikes.
However, the recent employment report indicated stronger-than-expected hiring momentum amid uncertain macroeconomic conditions. Despite mass layoffs, demand for workers continues to outpace the number of unemployed people looking for work. Such a robust labor market is expected to encourage the Fed to continue tightening its policy.
With recession fears looming, the market could remain under pressure in the near term. Therefore, investors could hedge their portfolios against the economic downturn by adding ETFs Vanguard Value Index Fund (VTV) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). These ETFs’ diverse holdings could help investors generate stable returns.
The Vanguard Group, Inc, manages VTV. It invests in value stocks of large-cap companies. It seeks to track the performance of the CRSP US Large Cap Value Index. The investment seeks to track the performance of the CRSP US Large Cap Value Index, which measures the investment return of large-cap value stocks.
As of December 02, VTV had $102.10 billion in assets under management (AUM) and a Net Asset Value (NAV) of $145.99. Its expense ratio of 0.04% is significantly lower than the category average of 0.48%.
The fund’s top holdings include…
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