Investors are encouraged to consider a poor performance in the stock market over the next six months.
According to Vanguard’s Roger Hallam, it is wise for long-term investors to have sufficient exposure to bonds in this environment.
“Our outlook for the second half of the year is that growth will be slower,” the company’s global rate head told CNBC’s ETF Edge on Monday.
Haram predicts that the labour market will gradually cool down while inflation rises. Hallam hopes the Federal Reserve will ultimately prioritize employment and offer insurance through the end of this year.
“I think it’s going to use the tail for bonding,” he said. “So we are confident in our bond outlook, so we believe our clients should allocate it to bonds.”
Vanguard is behind the funds trading on three US government bond exchanges that will debut this week. The launch includes the Vanguard Government Securities Active ETF (VGVT).
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The company’s prospectus shows that Treasurys holds the biggest exposure in the new ETF. Benchmark 10-year Treasury bond yields began at around 4.57% in 2025, falling to around 4.4% as of Tuesday.
Meanwhile, BlackRock’s Jay Jacobs sees Barbell’s approach as a valuable second half strategy as a hedge against the risk of slowing the economy.
“I think we’re going to see a lot of money that’s still been cash for a long time… Let’s start with a way to get back to their stock market,” the company’s US stock secretary said in the same interview.
He expects a buffered ETF designed to protect against the downsides and continue to provide an upward measure of performance to continue to protect against risk backgrounds.
BlackRock offers six buffer ETFs, including the ISHARES Large Cap Max Buffer Jun ETF (MAXJ). The fund has grown 5% so far this year, tracking the price-earnings ratio of the iShares Core S&P 500 ETF.
“Our fund MAXJ has recently reset, giving S&P up to 7% exposure over the next year. Such tools will be very popular for investors looking to return to the market,” Jacobs added that it is likely that investors will continue to commit crimes and migrate towards powerful macro themes such as artificial intelligence.
Jacobs also lists infrastructure as an important group.
“I think people are looking at very strong macro trends like the growth of US infrastructure as geopolitics and fragmentation around the world continue to affect markets,” Jacobs said.
