I believe that an active managed fund is better for bonds. Bond funds are not nearly as volatile as stocks. Bogleheads want passive, wide-market index funds for stocks to temper that volatility.
But consider that bonds enjoy priority repayment over other corporate obligations. Furthermore, the rates of bonds are contractually guaranteed.
Bonds may not pay off as predicted if the company goes bankrupt or if federal interest rates change. To manage the impact of interest rate change I lean toward intermediate term bonds. To manage the risk of bankruptcy I want a very high quality bond portfolio. BND, for example, meets these criteria.
However, considering that so many of the factors for bonds are known and can be mathematically analyzed, I want a bond expert to select and manage my bonds. I believe that a bond portfolio that contains some high quality, higher rate corporates can improve performance over a simple index bond fund. BND is 50% government bonds.
Fidelity's Total Bond Fund FTBFX and FBND ETF meet my criteria..
But consider that bonds enjoy priority repayment over other corporate obligations. Furthermore, the rates of bonds are contractually guaranteed.
Bonds may not pay off as predicted if the company goes bankrupt or if federal interest rates change. To manage the impact of interest rate change I lean toward intermediate term bonds. To manage the risk of bankruptcy I want a very high quality bond portfolio. BND, for example, meets these criteria.
However, considering that so many of the factors for bonds are known and can be mathematically analyzed, I want a bond expert to select and manage my bonds. I believe that a bond portfolio that contains some high quality, higher rate corporates can improve performance over a simple index bond fund. BND is 50% government bonds.
Fidelity's Total Bond Fund FTBFX and FBND ETF meet my criteria..
Statistics: Posted by Ozonewanderer — Fri Jan 31, 2025 10:05 pm — Replies 25 — Views 2147