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Which Bond Funds are you investing in right now?

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AUTHOR: Purple Rain on 6/22/2024

I have 10% of my portfolio in I-Bonds, 10% in Short term treasuries. With interest rates likely to go down, would long/intermediate bond funds make sense?

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jay5914
7 months ago

Keeping it simple and diversified, BND and AGG.

R. Thawani
7 months ago

Besides Individual Bonds with duration thru 2029, I have added some VCIT (Vanguard Investment Grade Intermediate Term ETF) in my IRA account in preparation for future lower interest rates.

Last edited 7 months ago by R. Thawani
1PF
7 months ago

In my traditional IRA, VSIGX Intermediate-Term Treasury Index (ER 0.07%) and VTAPX Short-Term Inflation-Protected Securities Index (ER 0.06%). In 2022’s skyrocketing interest rates, VTAPX did its intended job, paying over $44k in dividends.

John Yeigh
7 months ago

While I’ve never invested in a bond fund, I am aligned with your view to extend the term.
My wife and I locked in 10% of our portfolio in 5-7 year bonds late last year – mostly hi-grade corporates paying 5.5+%. This was by far the biggest and only longer-term bond commitment we’ve ever made as we’ve never been much into the fixed income side of the equation.
We have another 5% of the portfolio in cash and shorter term bonds, plus stocks that could be rebalanced. We’d be happy with more extended-term, high-rate bonds if interest rates bounce again. We probably should have locked in more of the portfolio to extended-term bonds during the April and May interest rate bounce.

Last edited 7 months ago by John Yeigh
Sanjib Saha
7 months ago

Most of my bond investments are in individual TIPS maturing at different years, but I do have some in inflation-protected Bond funds. Until last year, my only bond fund was VTIP, but I also have started to shift some money from VTIP to SCHP which has a higher duration than VTIP.

I’ve been thinking about adding some corporate bonds in the mix using the target-maturity funds (e.g., Bulletshare ETFs), but the small spread isn’t worth the credit risk for my taste.

R Quinn
7 months ago

FTHRX plus Muni Bond funds

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