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If you are interested in Treasuries I'd buy the bonds themselves and hold until maturity. You know your return and you pick how long you want to stay in the bonds (duration). Schwab, Fidelity, etc. allow you to buy treasuries either on the secondary market or via new auction. Probably best to watch a few videos specific to your brokerage to understand how it works on a specific brokerage website. If the interest is more general, and you don't want to deep dive, then something like FBND as a Total Bond fund might be worth considering. The duration is about 6 years so expect to hold it that long re-investing the dividends in the fund: [https://www.morningstar.com/etfs/arcx/fbnd/portfolio](https://www.morningstar.com/etfs/arcx/fbnd/portfolio) IEF is well known treasury fund with duration of about 7 years. I would not go longer then that (and don't). [https://www.morningstar.com/etfs/xnas/ief/portfolio](https://www.morningstar.com/etfs/xnas/ief/portfolio) r/bonds for more. Be careful about all the recent talk around TLT -- that's more of a capital gains move with more risk associated with the long duration and not as much a fixed income / stabilize a portfolio play (if that is your intent).
Pimco's PIMIX absolutely dusts FBND while having the same effective duration with higher returns, lower volatility, and lower max drawdown. Pimco is a known goat in the actively managed bond space.
For stocks, I'd use an index fund. For bonds, there is some advantage to active: FBND [https://www.morningstar.com/etfs/arcx/fbnd/quote](https://www.morningstar.com/etfs/arcx/fbnd/quote)
You can't have "safe" and "volatile" in a single investment. I'd go broad stock ETF (like SPY) for half and bond instrument (like FBND) for the other. But there are a thousand variations on this.
It does not make sense. High quality bonds are mostly uncorrelated with stocks, not anti-correlates, so they are not a hedge. They are a diversifier though. FBND has the same trailing ten year return as the bonds it holds. Well actually it is an active fund so it may or may not have outperformed based on the managers' trading. It has beaten treasury bonds and bills over the past ten years. https://stockcharts.com/freecharts/perf.php?FBND,BIL,BND,IEF,TLH&p=6
How does it make sense to hold bond funds as a hedge for equity risk? I am looking at the Gold star rated FBND total bond fund. It's ten year yield is 2.09%, well ahead of the category. At such a low yield and still sigficant fluctuation, why not simply invest in Treasury bonds and bills instead?
You wouldn’t be on top by much. I exited QQQ and VOOG (don’t ask me why I had both) and went junk and FBND a couple days before the tariffs started
Thanks for all this info, which I will read tonight. I have a good amount sitting in a fidelity money market, as I'm a few years away from retirement and recently reallocated my portfolio. (with Fidelity managing just one account) I'd like to put some of the MM cash into maybe FBND. Is today a good a time as any to do this? And if so, how long is minimum time it would make sense to hold in FBND? TIA!
Well, it’s FBND and it looks like a mix of T notes
Any specific ones? I bought FBND not long ago
But if you buy, say FBND, you can lose value due to market fluctuations or interest rate changes? Is that what you mean by my market risk?
Interest rates rise typically because the market is doing a bit too well. Rising rates mean existing bonds lost value because they still have the older rate and drop so the yields match. The opposite when markets are down. So typically bonds move opposite to the market. Short term bonds don’t change much. Long term treasuries the most. So LTT make a great hedge against the market. FBND holds a basket of many types of bonds, all differently behaving.
Bonds can be risky or not so risky. Depends on how you use them. So, it's complicated. But bonds are not safe just because "bonds" -- you should do your homework before buying bonds and know what you want to use them for. For FBND you would want to re-invest your dividends to buy shares as the price rises and falls. if you do that for the funds duration the value of the shares held at the end of the duration period will be close to your original investment plus the interest rate it paid at the time you purchased the fund. Matching duration to your investment horizon is important. [https://www.bogleheads.org/wiki/Individual\_bonds\_vs\_a\_bond\_fund](https://www.bogleheads.org/wiki/Individual_bonds_vs_a_bond_fund) : *If interest rates rise after purchasing a bond fund, the NAV of the fund falls, which hurts you. However, the dividends that the bond fund throws off can now be reinvested at a higher rate. The duration is the length of time that an investor needs to hold the fund for the increased yields to compensate for the decrease in NAV.* ***In that sense, duration represents the length of time it would take for the total value of the fund, with dividends reinvested, to be worth exactly what it would have been worth had interest rates not risen.*** *So, you should always hold bond funds with a duration equal to or shorter than the expected need for your money (note that holding the duration shorter than your need for the money leaves you exposed to the risk of lower returns if interest rates fall).* Bonds purchased for capital gains vs. buying them and holding to fund some future expense tends to drive the risk factor.
Okay, it sounds like you’re in a great spot. I’m not sure if you’re able to buy mutual funds without a transaction fee (easier to place trades) at your bank or if it’ll be better to buy ETFs, but I highly recommend an allocation of 70-75% stocks and 25-30% bonds depending on your risk tolerance. (If you think you can handle a little more risk do 75% stocks, if not then 70%). To make it easy, for the stock allocation I recommend 75% Total Stock Market Index (such as VTI or SCHB) or S&P 500 Index (such as VOO or SPLG). The other 25% should be in international stocks (such as VXUS or VEU). The bond allocation can be as simple as BND or FBND or if you want a little extra return you can use 50% JPIE and 50% BINC. Ideally you’d place a lump sum of 25-50% this week, especially since the market is down and DCA the rest over the coming weeks or months. Let me know if you have any questions.
Not even sure where to park my money. Considering FBND or IAUM if not cash.
If you don’t like Treasury Direct, you could buy bonds and Treasuries from Fidelity. I just had a call with an advisor today about the bond market because I’m pretty clueless about fixed income investing. He recommended FTBFX and FBND as 2 solid fund options.
ABBV, BRKB, JNJ in the taxable. For etf’s it’s SCHD, SGOV and FBND. I’ve also substantially trimmed my spec names which I trade in the Roth accts and put the proceeds half into SGOV for dry powder if there’s a sell off and half into resi REITs in the Ira’s and half into mlp WES in the taxable. Half the Roths are still regular index stuff. I’m also 55 yrs so dialing down the risk a bit.
I wouldn't necessarily rebalance existing holdings, but I would probably start throwing money into the bond market for now. Also, for bonds, go for active bond funds like VPLS or FBND. Bonds are different than stocks where if you can see inflation and interest rate sticking or rising (or dropping, but doubt it with tariffs inflating prices), an active fund could be better because the manager can hop off the worst of the affected bonds and buy other bonds that would fare better. With bnd, you have an index slice and stuck with it... Meaning of 2022 happens again, your bond is going to plummet way more than active bond funds.
I'm 60ish and I have an IRA with Fidelity. So for my stocks/bonds, instead of VOO/BND, I've got FXAIX/FBND. Is there any difference there?
Long: U.S. TIPs ladder of individual bonds, held to maturity (retirement), to augment Social Security. No other long term bond holdings. BND, FBND, IEF All with duration under 9 years. VEMBX for some emerging market. MINT for very short term.
If I would be keeping the money invested for 6 years and can also afford to re-invest the dividends into the fund for that time, GOVT. (For more yield, and more risk, I like FBND, also a 6 year duration.) If I need the money for any reason in next two years, SGOV. (JPIE or MINT for more yield and risk.)
Assuming that you're relatively young (under 40): $700 into FSKAX $200 into FTIHX $100 into FBND Assuming that you're 40-55: $700 into FSKAX $100 into FTIHX $100 into SCHV $100 into FBND Assuming that you're 55-65: $400 into FSKAX $400 into FBND $200 into SCHD If you're a bit older and/or already retired, it depends entirely on your financial landscape.
Individual bonds can fail and a fund spreads out that risk. But if buying treasuries that risk is minimal. So individual for treasuries and fund for general bond funds (where the fund includes treasuries and corporate). I like FBND and BND. I would buy bonds with the plan to hold until maturity so the rate you get is the rate you get and falling or rising rates won't matter (if held to maturity). If you want to buy bonds for capital gains then there is a lot to learn about bonds as there are more factors to consider. Start here: [https://www.investopedia.com/articles/bonds/08/bond-risks.asp](https://www.investopedia.com/articles/bonds/08/bond-risks.asp)
FBND is not like a FI version of VOO. FBND is an actively managed core plus strategy. Not an index fund
I like FBND in Fidelity for a total bond fund. Make sure you look at any funds on a site like [Morningstar.com](http://Morningstar.com) checking out (comparing) the portfolio holdings, duration and yield to maturity.
Are you considering bonds? I like VEMBX for emerging market and FBND for a total bond fund. (Both are actively managed.) Ben Felix has a good video on the downside of cover call option funds: [https://www.youtube.com/watch?v=YMLVdY8y8vM](https://www.youtube.com/watch?v=YMLVdY8y8vM) (I still own JEPI, though).
Corporate bonds and CDs can, and are, often sold with a callable 'feature'. Watch for that as the highest interest rates you see often allow the bond/CD to be called before maturity. Schwab and Fidelity allow you to filter out the callables from the list they present. HYSA interest rates vary with time while CD and Bonds are fixed, so I would say that is the biggest difference and rules out HYSA/MoneyMarkets for longer term. With a bond you know what you get if held to maturity. I've found bonds often have longer maturities (or a greater range of offerings) then CDs and can fit in better with my plans then CDs. But, I'll take a three year CD or three year bond to fund something needed in three years. Either works. Bonds are probably easier to liquidate if you need to sell then CDs. Make sure you investigate and learn about bond duration and associated risk. The first thing I look at for a bond fund is the fund duration and yield to maturity. Investigate the terms duration and yield to maturity. A bond fund, held for it's duration with the dividends re-invested into the fund will return the funds current yield to maturity over the funds current duration. Bonds are not necessarily a safe investment. The longer the duration the greater the risk. I think Ben Fellix once said (in one of his videos) bonds are safer short term and riskier long term and stocks are riskier short term and safer long term. The context around this is probably staying ahead of inflation (a 30 year bond paying 4% is a bigger unknown in terms of staying ahead of inflation if held for the next 30 years then a index fund of stocks which probably will beat inflation over 30 years). Don't forget TIPs. [https://www.reddit.com/r/investing/comments/17ihyj2/talk\_me\_out\_if\_thisi\_am\_thinking\_of\_locking\_up\_a/](https://www.reddit.com/r/investing/comments/17ihyj2/talk_me_out_if_thisi_am_thinking_of_locking_up_a/) The Fed sets the overnight bank borrowing rate; not bond rates. The markets sets bond rates. The Fed influences rates but the longer the bond duration the less the rate is influenced by Fed rates. The Fed can drop rates but they may not drop long bonds by the same amount. Look up yield inversion around bond rates to get some insight into current rates which are un-inverting now. There may be some advantage to active management in a bond fund. Do not dismiss a bond fund because it is managed. For a general bond fund with treasuries and corporate I like FBND (it is managed). Mid term treasuries: IEF I'm using a treasury bond ladders to fund age 65 to 70 in retirement. Bond funds past that. And a small amount of individual TIPs in a ladder for age 70 to 90 for some extra inflation protection. Articles at [morningstar.com](http://morningstar.com) have been very helpful around building up some bond knowledge.
You should consider bonds with a maturity/duration that match how long you will hold the bonds. That is duration. Bond funds have different durations which is important when considering a bonds fund. You can see the duration and yield if you look up the portfolio holdings at morningstar.com. Example: TLT: [https://www.morningstar.com/etfs/xnas/tlt/portfolio](https://www.morningstar.com/etfs/xnas/tlt/portfolio) IEF: [https://www.morningstar.com/etfs/xnas/ief/portfolio](https://www.morningstar.com/etfs/xnas/ief/portfolio) SCHO: [https://www.morningstar.com/etfs/arcx/scho/portfolio](https://www.morningstar.com/etfs/arcx/scho/portfolio) FBND: [https://www.morningstar.com/etfs/arcx/fbnd/portfolio](https://www.morningstar.com/etfs/arcx/fbnd/portfolio) If you need to dip into it you should be using shorter duration funds. Long term funds are more speculative (riskier) unless you plan to hold then for the duration. Example, SCHO has a duration about two years and a yield to maturity of 4.66%. If you held it for two years, putting the dividends back into the fund \*buy more shares with the dividends), after two years the value of your fund holdings (you would have more shares since dividends went back in) would have appreciated over your initial investment by approximately 4.66%, per year (the yield to maturity). It's possible the fund share price could be down in two years as rates fall, but you would have bought more shares along the way be re-investing dividends (which is how you get the yield to maturity).
Anybody like the Fidelity Bond ETF - FBND It has a 4.55% yield.
What is the duration of your short term bonds. What duration do you mean by long term? Do you understand longer duration has more risk? In addition, the Fed does not set bond rates (markets do); Fed sets overnight borrowing rates and the further out the duration the less impact Fed changes will have. I think intermediate duration bonds are probably the way to go. You might read through: [https://www.morningstar.com/bonds/](https://www.morningstar.com/bonds/) I like IEF for treasuries (7 year duration) and FBND for a total market fund (6 year duration, FBND is actively managed).
For someone like you who it sounds like it seeking a solid medium balance between risk/reward I personally suggest the following breakdown of ETFs: 60% - VOO - S&P 500 index fund with blend of mid cap and large cap stocks 10% - AVUV - small cap value fund. An actively managed small cap fund with high diversification and return rates. Gives some exposure to the small cap market with solid returns and high diversification protects against the risks that often come with small caps. 10% - BKIE - International large and mid cap fund in developed markets only. Even though the US has long term dominated in returns it has not and likely will not always be that way. Its good to have some international exposure and this fund hones in on the good international market with solid returns, while still being diversified 10% - GLDM - 100% physical gold fund. Gold has had a good year but historically underperforms other investments. Good to have some for diversification with this commodity though! 10% - FBND - total bond market fund. A little bit of bond diversification for hedging against volatile periods. Keep in mind bonds have low growth. They pay income more in coupons over time than the price growth. ——- If you are someone who just wants a singular fund though I would go with VOO for that balance between medium risk/reward without much volatility. You’re gonna have volatility in any investment and there is no way to avoid that. S&P 500 historically always does good (lifetime approximate 14.50% annual return rate, when the typical average is 8-10%), low expense ratio, above average annual returns, good diversification across about 500 holdings without over diversifying, Warren Buffet holds it for a reason. The main risk is you are 100% in US only large cap/mid cap stocks. If for some reason the US starts not doing well and international is better you miss out. Long term the US easily wins investment returns, but that has not always been the case forever and it is never promised to last forever. Also, if the market ever tanks you have 0 exposure to anything other than stocks which can cause volatility, though the market pretty much always comes back again and keeps growing so don’t stress it too much. You also have no small cap exposure. Usually small caps don’t beat large and mid cap stocks, but if they do you’re missing out on any exposure to them. These are a lot of risks and may sound scary, but it’s good to note even if you are not always optimally invested every time the market moves, VOO is never really gonna be a bad option as the fund is rebalanced quarterly and companies go in and out of the S&P 500 as companies rise and grow so it’s always gonna be rebalanced for you to not have to think about it. I just wanted to note those risks as food for thought!
I like IEF for this. Not as short as 5 year duration but not way out there like TLT. Yield to maturity is about 4%. Or something like SCHR for 5 years with a 4.35% yield to maturity. For a bit more yield FBND but that also has corporate bonds (still, GOLD rated by Morningstar). (I own all three.) Also look at JPIE. 3.82 year effective maturity. Fees are a bit high but yield is pretty good. Note the Fed does not set bond rates, the market does. The longer the duration the less impact Fed interest rate changes will make. So, I look for a bond fund duration of 8 years, or less (intermediate). I prefer treasuries and look for low fees. I'm not buying the TLT story due to the duration. Intermediate duration funds like FBND, IEF and SCHR have outperformed TLT,in the past year.
FBND Fidelity Total Bond ETF, Intermediate Core Plus Bond, low fees and good track record.
Similar situation. Moving Money Market funds to Intermediate bond funds IEF, SCHR (Treasuries), MINT for future cash, JEPI for income with some appreciation. FBND if you want more yield with corporate. IEF and SHR have 6 to 7 year duration but I expect some capital gains over next two years. I also like VEMBX for emerging market bonds. I try to keep most bonds in Treasuries and use stocks for more risk/appreciation as opposed to corporate bonds (which are going to be more correlated to stocks then Treasuries).
theoretically if i switched AGG with FBND would that be better or worse for me?
People need to keep in mind the Fed does not set long term rates. And the yield curve is inverted now; if it reverts long bond interest rates may not drop as much as people seem to be anticipating they will. Make sure you understand the risk of long bonds (since many people think bonds == safe). For Treasuries, I'm not going out past ten years. Something like IEF for funds or just individual bond. I'm buying long TIPs but to hold to maturity in a ladder (last October was a great time for those, now is pretty good, too). I have some corporate but not adding to those as I think they are more correlated to stocks so why not just buy stocks and use a smaller percentage of treasuries for safety? But, yes I own corporate, too. FBND is an example. Close to retirement; 40% in fixed equities.
I purchase many intermediate treasuries directly on the secondary market in Schwab and Fidelity accounts. I plan to hold these til maturity and I am using them for the funding 'bucket' (ladder) for my first few years of retirement (soon) as a bridge to age 70 when I would take Social Security. I also make sure any bond funds I hold include at least one third treasuries. I hold FBND and BND as my main bond funds as well as individual treasuries. I use Morningstars Portfolio X-ray to look at the overall mix to evaluate bond style/quality. TIPs can be tricky. I built a TIPS ladder to help fund post age 70 needs using individual TIPs purchased on the secondary market on Fidelity. Maturing between 2030 to 2050. The idea is to have just a bit more inflation adjusted income over Social Security and take advantage of last October's 2.4% peak. Spread is closer to 2.1% now (https://www.wsj.com/market-data/bonds/tips). It's a pretty deep dive to buy and build a TIPs ladder and took many hours study and a few hours to just purchase them on Fidelity (a frustrating experience as the prices change so fast by the time you select the Buy button the price is changed and the order not filled). I have not used a TIPs fund. I added many links on the TIPs sources I used in this thread with the boglheads links listed being most helpful but a very deep dive: [https://www.reddit.com/r/investing/comments/17ihyj2/talk\_me\_out\_if\_thisi\_am\_thinking\_of\_locking\_up\_a/](https://www.reddit.com/r/investing/comments/17ihyj2/talk_me_out_if_thisi_am_thinking_of_locking_up_a/) iShares also has bond funds that mature and liquidate at a specific date.. Includes TIPs, Treasuries, and corporate. I have not looked too closely at these to see how far out they go for the TIPs version (I suspect not offered out 30 years). But they seem like a possible way to build a TIPs ladder with less work. Example: [https://www.ishares.com/us/products/333128/ishares-ibonds-oct-2030-term-tips-etf](https://www.ishares.com/us/products/333128/ishares-ibonds-oct-2030-term-tips-etf)
My main thought is if the allocation across account types is setup so the equities portion are (as much as possible) in the ROTH, then IRA. Fixed income in the taxable account. So the brokerage account is 100% bonds and the other two setup with equities to get the overall 60/40 allocation. The theory being stocks are more likely to have a higher return (over time) so those are in tax deferred accounts. I also use Morningstar and those bond funds are both gold rated and look like solid choices. Personally, I'm tilting my bonds more to treasuries since corporate bonds may not be as well diversified from equities (which is one of my reasons to hold bonds). I'm also adding TIPs and a bit of emerging market (VEMBX). I see BND is 50% treasuries so that would track with my preference. If you want more yield, FBND is also a well respected fund, gold rated but has less treasuries then BND.
These are handy instruments to invest: Credit Suisse Strategic Income / CSOAX with 7.8% yield BlackRock High Yield Bond / BHYAX with 6.5% yield Fidelity Total Bond / FBND with 5.5% yield
FBND is getting shorted. Time to sell?
FBND has an average 6+ duration so it's a totally different investment then a standard CD. The equivalent would be an ultra short tbill ETF.
Yes bonds I hold do change value however if I hold them to maturity I get my investment back. The drop in value only becomes an issue if I sell it before maturity yes? I buy $1000, draw some interest, bond matures and I walk away with $1000. I bought FBND thinking the price would be more stable to protect my principal. Bought at $52.94, it's now at $45.44 and I've lost $3,600. I like the 4.27% yield in my HSA but ... I didn't really understand at the time and that's on me. I hindsight I think I would have been better to have created a CD or Treasuries ladder for the $25k.
yep....agree. You could also look at floating rate bonds like FLOT - credit rating AAA-BBB only. FBND from Fidelity is also like AGG/BND.
Have a look at FBND to split the difference (in terms of current return). Similar to FXNAX with more corporate.
Responses below seem to indicate people are interpreting your post to mean capital gains. \>> I haven’t been able to see how one is more advantageous over the others but I’m not an expert. A difference is risk. If rates rise 1%, 10 year bonds drop 10%, 20 year bonds drop 20%, 30 year bond drop 30% (those are made up numbers to make the point). Same thing the other way if rates go down the longer bonds value will go up more then the shorter duration. More risk more return, but more risk means possibly larger losses. Long bonds could tank if the fed holds (because priced in is the fed will drop) or raises. But, if you buy the 30 year bond with the plan to hold forever and fund retirement, you don't care as much. I'm conservative, and would not go past 10 years. I see a couple general Morningstar Gold rated bond funds (FBND, BND) are around 6 to 7 years duration.
1. Check if your job has a 401k. Sometimes employers give you extra money to invest in these accounts. For example, my old job allowed me to contribute up to 3% of my salary and they would double the amount I deposited for free (its called "matching"). So if I deposited $100 each paycheck, my account would get $200. Ask your job if there is a 401k, and specifically ask if they "match" anything. 2. Open a Roth IRA. It is like a regular account except you **never pay taxes** on the gains you make. One difference is that you are limited to depositing $6500 per year that value goes down if you make more than $138k/year. If you plan on needing this money soon (like to buy a house), then consider allocating some of your money in bonds (like FBND). But for longer time horizons, going mostly or entirely into stocks is broadly recommended. I personally have VTI which is an ETF. ETFs are basically baskets of tons of different stocks. For example, $10,000 worth of VTI means you will have $112 Exxon Mobil, $281 Amazon, $100 JP Morgan Chase, $72 Home Depot, $52 Coca Cola...etc. There are literally thousands of companies included in VTI. Other ETFs can be more specific (for example another person commented on this thread suggesting QQQ which is an ETF that includes 100 mostly Tech companies). You could also invest in individual companies you think will do well. But the truth is that even experts have a hard time picking and choosing winners consistently. My mom just recently asked me to buy some Disney stock as she saw how much the price had dropped and thought it could rebound. She knew she already held tons of Disney stock through an ETF, but she specifically wanted extra exposure to it.
Gotcha. I have some FBND and some FTBFX because going entirely FXAIX seemed scary and [someone I trust told me to diversify my bonds](https://m.media-amazon.com/images/M/MV5BMTQ1NzMwMTg2OF5BMl5BanBnXkFtZTgwMjE4Nzc3MjE@._V1_.jpg)
The FBND I bought in Nov. 2019 is down 11.67%. The FBND I bought in April 2019 is down 8.61%. Stock ETFs are doing fine by comparison. When they tell you that bonds add ballast to your portfolio, they don't tell you what inflation will do to their value. Wish I had waited until now to buy. Actually I wish I had just put the money in VOO or IVV- or held it in cash.
Wow so much upside here with no debt, in a better place than 99% of age 30 people out there I imagine. Personally I got 40/40/20 40% blue chip growth long term play 40% index like spy / voo 20% some sore of current income like FBND (hope the ticker is right), AWF, or O. Kinda gives me the best of a lot of different worlds.
IMO - SCHD is a good choice - VOOG is meh, I'm not a big fan of growth stocks. large growth stocks tend to be mediocre performers over the long-term. professionals and amateur retail investors both tend to over-pay pretty dramatically for growth stocks relative to what you get long-term. I'm old enough to (barely) remember the dot com bubble and when the S&P 500 went flat from 2000-2012 so I've seen the downside risk of large growth stocks. - RWL is another good choice. Never seen anyone here mention this ETF but I like the strategy because it avoids too much concentration in the usual Apple-Amazon-Microsoft-Tesla stocks. this ETF sort of represents the economy more than representing the stock market. - ANGL is 'fallen angel' bonds, companies whose bonds have been recently reduced in their credit rating. these are the highest bracket of 'junk bonds' which is why the yield is so high. this is an OK option for what it is, but it's not representative of the overall bond market. junk bonds also tend to move more like stocks, so this is a good one for income but will not add much stability. for that you'd want short-term bonds or a diversified, investment grade bond ETF like BND, LQD, FBND, TOTL or CGCP - you're right on consumer staples and downturns at least historically, and this sector also tends to perform well over the long-haul. but consumer staples is also verging on overvalued so returns might be disappointing over the next 5-10-15 years. IYK has a p/e ratio of 19/20 and it's very concentrated with 16% in Tesla (!) and 15% in P&G with several other stocks at 11% of the portfolio. - you need international holdings and maybe US smaller companies as well.
That is the thing about risk tolerance and stocks if you can actually stomach the huge losses and just keep holding you get amazing returns over a ten year period 8-15%. If you want good returns with less risk 6-7% a year you do a bond stock mix. Right now 10 year us treasuries have a guaranteed return of 3.87% annually. Regular bond ETFs the have corporate bonds and such are yielding 4.89%. The classic 60/40 portfolio is 60% stocks 40% bonds. If you just want residual income do 60% SCHD 40% FBND
SPY VEA VIGI LQDI FBND PDBC… I’m scared of losing money
I’m down in everything including FBND. Wondering if I should sell for tax loss harvesting and buy another bond Fund. Also, ARKK…bloodshed. Sell and tax loss harvest for short term? Or…
25% lower return over 7 years. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2022&lastMonth=12&calendarAligned=true&includeYTD=true&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=FBND&allocation1_1=100&symbol2=CASHX&allocation2_2=100&symbol3=SCHP&allocation3_3=100
FBND is down less than 3% on the year, and all of its loss is since January. Seems like a pretty safe haven.
Quite right - I considered this a minor difference for the purpose of OP's question, since my opinion is that the primary practical difference between ETFs and Mutual Funds is liquidity and settlement time. It didn't seem like these would be issues for the OP, and perhaps wouldn't merit a distinction. But I did go back and update my comment to be a bit more clear, and I did add that Fidelity does have a total bond ETF (FBND).
Hi and thanks in advance for any help. 19M / USA / $14,000 in savings / no debt I just put my first $500 into a Roth IRA with Fidelity. I plan on maxing out my contributions this year. My goal is to save this for retirement. My time horizon is long and my risk tolerance is somewhat high. I want to invest in ETFs, mostly equities (both US and foreign), and some bond ETFs. I would like to take advantage of Fidelity’s commission free ETFs and get some of those. Here are the ETFs I’m considering: FENU, FBND, FDHY, FDEM, FNCL, FREL, FDVV, VB, VOO Any advice on which of these I should pick for a good mix? Other ETF suggestions? Or suggestions in general? I’m very new to this, hoping to make a few solid, diverse investments to start off and learn as I go along. Also, when is a good time to buy? Should I wait for prices to dip or should I buy ASAP, assuming values will keep going up? Thanks so much!
I use Fidelity so, US total market: FZROX International: FZILX US Bond: FBND, FUMBX I hear vanguard is also great, I don’t have a preference for either
What are some good tax-advantaged mutual funds/ETFs? In my taxable account, I aim for ~70% in an S&P 500 index fund, about 15% international index fund and 15% bond fund. Right now I have positions in FUMBX and FBND but I was wondering if I should move those into something like OPTAX or GHYAX, for better returns and more importantly, tax-free income?
Extremely new to investing, only a paltry sum of about 1.5k total. 29 years old (just a week or two until 30!) and largely interested in holding for a couple of years, probably around 5 or so. Really really flexible in how I go about everything since I’m just dipping my toes into this. Totally still feeling my way around everything, and very much open to advice! (I have a 401k and a safety net and everything, so this is essentially play money.) Also I’m aware my portfolio isn’t super diversified, I just kind of did what Fidelity recommended I do. If anybody has any advice for sustainable and eco initiatives to invest in, I’m particularly keen on that! SPAXX 39.45 AMD 12.99 CNBS 25.28 FBND 7.75 FNILX 14.52 Roast me but be kind because I’m a stupid peasant ty