This is part of my research to understand various assets better.
Maybe? Since the issuer is the US government, they are generally considered to have zero issuer risk. But a 30Y T-Bond is a completely different animal than the BND ETF which has an average maturity somewhere around 7 years. The question would be what do you want a bond or bond fund to do for you, or why are you investing in it? TBH, you probably want BND or maybe an intermediate term treasury ETF such as VGIT.
A few weeks ago in one of my posts I had posed a question about investing in a TIPS ladder, if I have already saved the amount of money I think I might need in retirement. Then, I would not have to "worry" about it being invested in an asset that may be "down" when I need to withdraw from it.
A 30Y T-Bond seems simpler to understand although does not protect against inflation like TIPS do. (I have not wrapped my head completely around how to purchase TIPS or how exactly they work, yet.) A 4% yield on the 30Y T-Bond seemed pretty good though and if the limit is $10M, then it if one had a couple million to sock away in it, it seemed like a simple and straightforward investment asset.
Statistics: Posted by consinv — Mon Sep 09, 2024 10:09 pm — Replies 4 — Views 234