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
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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BAC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 56.840
Low
55.00
Averages
61.64
High
71.00
Current: 56.840
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 Launches Scam Prevention Education Initiative
- Scam Seminar Initiative: By the end of 2026, Bank of America plans to conduct 2,500 in-person scam prevention seminars, reaching tens of thousands of consumers, aimed at enhancing public awareness and prevention capabilities against financial scams, thereby strengthening community financial security.
- Rich Educational Resources: The bank sends over 1 billion educational messages annually and utilizes more than 50 AI-driven fraud detection models to help clients identify and respond to increasingly sophisticated financial scams, further enhancing customer security awareness and prevention capabilities.
- Community Collaboration Expansion: Bank of America partners with local law enforcement and community organizations to ensure scam prevention education reaches every community, particularly targeting vulnerable groups such as youth and the elderly, thus increasing the relevance and effectiveness of the education provided.
- Enhanced Technical Support: With an improved Security Center and My Credit features, clients gain access to comprehensive identity monitoring and restoration services, further enhancing customer security in the digital financial landscape and ensuring they can better protect their financial well-being.
See More
Federal Reserve Policy Consensus Expected to Return
- Consensus Expectation: Prediction market traders anticipate that new chairman Kevin Warsh will restore consensus within the Federal Reserve's policy-setting board during Wednesday's interest rate decision, with expectations of no dissent in June voting reflecting market confidence in policy stability.
- Interest Rates Steady: The Fed is widely expected to maintain its current interest rates at 3.50% to 3.75% on Wednesday, indicating policymakers' cautious stance regarding rising inflation driven by higher oil prices due to the U.S.-Iran conflict.
- Historic Dissent Reduction: The April meeting saw the highest dissent in over 30 years with four dissenters under former chair Powell, while market expectations for dissent in June are only at 3%, suggesting increased confidence in future policy direction.
- Market Reaction Insights: According to Bank of America's June Global Fund Manager Survey, 55% of respondents believe the Fed will adopt a
See More
New Fed Chair May Skip Dot Plot Release
- Dot Plot Absence: New Fed Chair Kevin Warsh may not submit a dot plot, potentially breaking a 14-year tradition, which could unsettle markets regarding monetary policy expectations and investor confidence.
- Communication Reform: Warsh believes the dot plot limits the Fed's decision-making capabilities, which could lead to market misunderstandings about future policies, especially amid rising inflation and interest rates, impacting investor sentiment.
- Market Reaction Watch: Economists warn that if Warsh opts out of the dot plot, it may send the wrong signals, leading investors to interpret it as a diminished commitment to combating inflation, thus affecting market volatility.
- New Strategy Test: This meeting will serve as a litmus test for Warsh's new communication strategy, with markets closely monitoring any changes in the post-meeting statement and whether he will continue holding press conferences after each meeting.
See More
Wells Fargo's Performance Deteriorates Post Asset Cap Removal
- Asset Cap Removal: After Wells Fargo lifted its $1.95 trillion asset cap in June 2025, expectations were high for business growth; however, the bank's performance in 2026 has been disappointing, with shares down nearly 9% year-to-date, underperforming the S&P 500's over 10% gain.
- Disappointing Earnings: Following two consecutive subpar quarters, Wells Fargo's stock was downgraded to a hold-equivalent rating, with the price target reduced from $100 to $95 per share, reflecting market concerns about its future profitability.
- High Efficiency Ratio: The bank's efficiency ratio stood at 67% for Q1 2026, worse than Citigroup's 62% and Bank of America's 61%, indicating ongoing challenges in cost reduction despite improvements since CEO Charlie Scharf's tenure began in 2019.
- Investment Banking Expansion: While Wells Fargo has increased investments in its investment banking and capital markets, its minor role in the SpaceX IPO resulted in significantly lower fees compared to competitors, highlighting its struggles in diversifying revenue and capturing market share.
See More
U.S. Credit Card Delinquencies Continue to Decline
- Delinquency Rate Decline: The average credit card delinquency rate for major U.S. banks fell to 2.47% in May from 2.55% in April, below the three-month average of 2.57%, indicating a short-term improvement in consumer repayment capacity.
- Charge-Off Rate Decrease: The average net charge-off rate dropped to 3.63% in May, down from 3.70% in April and the three-month moving average of 3.72%, reflecting effective credit risk management by banks, although it remains above the pre-pandemic level of 3.97%.
- Future Risk Warning: Despite the current positive delinquency trends, economist Heather Long warns that delinquency rates may rise in Q3 2026 as consumers may struggle to maintain financial stability after tax refunds diminish, particularly in a high-inflation environment.
- Consumer Sentiment Fluctuation: Preliminary data from the University of Michigan indicates a rise in consumer sentiment in June, especially among lower-income groups benefiting from falling gas prices, yet economists caution that this uptick does not signify overall economic improvement as consumers continue to face financial pressures.
See More
Kansas City Current Renews Multi-Year Partnership with Bank of America
- Partnership Renewal: The Kansas City Current has renewed its multi-year partnership with Bank of America, aimed at promoting soccer nationwide, reflecting Bank of America's long-term commitment to the community and expected to enhance both organizations' local impact.
- Community Initiative Support: Bank of America will continue as the official partner of the Current, having participated in several community projects over the past three years, which is expected to further increase youth engagement and community cohesion.
- Soccer Experience Promotion: The two will collaborate on the 'Soccer With Us' initiative, providing free soccer experiences designed to help underserved youth, which is anticipated to foster a love for the sport among young people.
- Significant Economic Impact: With 33 locations in the Kansas City area, Bank of America invests locally, and through soccer activities and community projects, it is expected to further drive economic development and enhance the quality of life for local residents.
See More
Bank of America Launches Scam Prevention Education Initiative
- Scam Seminar Initiative: By the end of 2026, Bank of America plans to conduct 2,500 in-person scam prevention seminars, reaching tens of thousands of consumers, aimed at enhancing public awareness and prevention capabilities against financial scams, thereby strengthening community financial security.
- Rich Educational Resources: The bank sends over 1 billion educational messages annually and utilizes more than 50 AI-driven fraud detection models to help clients identify and respond to increasingly sophisticated financial scams, further enhancing customer security awareness and prevention capabilities.
- Community Collaboration Expansion: Bank of America partners with local law enforcement and community organizations to ensure scam prevention education reaches every community, particularly targeting vulnerable groups such as youth and the elderly, thus increasing the relevance and effectiveness of the education provided.
- Enhanced Technical Support: With an improved Security Center and My Credit features, clients gain access to comprehensive identity monitoring and restoration services, further enhancing customer security in the digital financial landscape and ensuring they can better protect their financial well-being.
See More
Federal Reserve Policy Consensus Expected to Return
- Consensus Expectation: Prediction market traders anticipate that new chairman Kevin Warsh will restore consensus within the Federal Reserve's policy-setting board during Wednesday's interest rate decision, with expectations of no dissent in June voting reflecting market confidence in policy stability.
- Interest Rates Steady: The Fed is widely expected to maintain its current interest rates at 3.50% to 3.75% on Wednesday, indicating policymakers' cautious stance regarding rising inflation driven by higher oil prices due to the U.S.-Iran conflict.
- Historic Dissent Reduction: The April meeting saw the highest dissent in over 30 years with four dissenters under former chair Powell, while market expectations for dissent in June are only at 3%, suggesting increased confidence in future policy direction.
- Market Reaction Insights: According to Bank of America's June Global Fund Manager Survey, 55% of respondents believe the Fed will adopt a
See More
New Fed Chair May Skip Dot Plot Release
- Dot Plot Absence: New Fed Chair Kevin Warsh may not submit a dot plot, potentially breaking a 14-year tradition, which could unsettle markets regarding monetary policy expectations and investor confidence.
- Communication Reform: Warsh believes the dot plot limits the Fed's decision-making capabilities, which could lead to market misunderstandings about future policies, especially amid rising inflation and interest rates, impacting investor sentiment.
- Market Reaction Watch: Economists warn that if Warsh opts out of the dot plot, it may send the wrong signals, leading investors to interpret it as a diminished commitment to combating inflation, thus affecting market volatility.
- New Strategy Test: This meeting will serve as a litmus test for Warsh's new communication strategy, with markets closely monitoring any changes in the post-meeting statement and whether he will continue holding press conferences after each meeting.
See More
Wells Fargo's Performance Deteriorates Post Asset Cap Removal
- Asset Cap Removal: After Wells Fargo lifted its $1.95 trillion asset cap in June 2025, expectations were high for business growth; however, the bank's performance in 2026 has been disappointing, with shares down nearly 9% year-to-date, underperforming the S&P 500's over 10% gain.
- Disappointing Earnings: Following two consecutive subpar quarters, Wells Fargo's stock was downgraded to a hold-equivalent rating, with the price target reduced from $100 to $95 per share, reflecting market concerns about its future profitability.
- High Efficiency Ratio: The bank's efficiency ratio stood at 67% for Q1 2026, worse than Citigroup's 62% and Bank of America's 61%, indicating ongoing challenges in cost reduction despite improvements since CEO Charlie Scharf's tenure began in 2019.
- Investment Banking Expansion: While Wells Fargo has increased investments in its investment banking and capital markets, its minor role in the SpaceX IPO resulted in significantly lower fees compared to competitors, highlighting its struggles in diversifying revenue and capturing market share.
See More
U.S. Credit Card Delinquencies Continue to Decline
- Delinquency Rate Decline: The average credit card delinquency rate for major U.S. banks fell to 2.47% in May from 2.55% in April, below the three-month average of 2.57%, indicating a short-term improvement in consumer repayment capacity.
- Charge-Off Rate Decrease: The average net charge-off rate dropped to 3.63% in May, down from 3.70% in April and the three-month moving average of 3.72%, reflecting effective credit risk management by banks, although it remains above the pre-pandemic level of 3.97%.
- Future Risk Warning: Despite the current positive delinquency trends, economist Heather Long warns that delinquency rates may rise in Q3 2026 as consumers may struggle to maintain financial stability after tax refunds diminish, particularly in a high-inflation environment.
- Consumer Sentiment Fluctuation: Preliminary data from the University of Michigan indicates a rise in consumer sentiment in June, especially among lower-income groups benefiting from falling gas prices, yet economists caution that this uptick does not signify overall economic improvement as consumers continue to face financial pressures.
See More
Kansas City Current Renews Multi-Year Partnership with Bank of America
- Partnership Renewal: The Kansas City Current has renewed its multi-year partnership with Bank of America, aimed at promoting soccer nationwide, reflecting Bank of America's long-term commitment to the community and expected to enhance both organizations' local impact.
- Community Initiative Support: Bank of America will continue as the official partner of the Current, having participated in several community projects over the past three years, which is expected to further increase youth engagement and community cohesion.
- Soccer Experience Promotion: The two will collaborate on the 'Soccer With Us' initiative, providing free soccer experiences designed to help underserved youth, which is anticipated to foster a love for the sport among young people.
- Significant Economic Impact: With 33 locations in the Kansas City area, Bank of America invests locally, and through soccer activities and community projects, it is expected to further drive economic development and enhance the quality of life for local residents.
See More
