VWALX

LittleBoy1954

The US bond market is having a good year. The Morningstar US Core Bond Index is up 6.31% for the year to date.The Vanguard High-Yield Tax-Exempt Adm (VWALX) is yielding 4.0 % (tax free). Safe, consistent, no need to have to learn the options market, write a trading plan, etc. You’ll thank us later for saving you from yourself.

ruler_gurl

> stocks and bonds tend to have an inverse correlation It's less true than it was decades ago. They seem to move more in tandem although equities have larger swings. But dropping rates affect stocks the way as it affects bonds. If you want higher premiums and no taxes you might want to consider VWALX. It is more volatile than BND but in a good way as rates go down.

SeesawFlashy8354

I do 50% VOO, 25% VXUS, 25% VXF so all my bases are covered Also own a bond fund that I stash some extra in VWALX bc it’s nice getting monthly tax free distributions into my bank account. 3-6 month emergency fund in VMFXX, should probably be bigger though but I don’t pay rent

Aggressive-Donkey-10

consider Vanguard's municipal bond fund VWALX, its 30day SEC yield at 4.02% which for top bracket is an effective yield of 4.02/.63= 6.41% yield, has a 50k minimum, will take your 5.6 to 5.959 after yr1 then 6.341, 6.747, 7.180, and by year 5 to 7.640 million, all tax free if the interest rates don't change etc also depends on which state you live in , if Ca or New York then may change which fund you can also very easily buy muni bonds yourself from your brokerage, doing the research is a lot of fun and you learn a lot about the sponsoring companies and their industries, but Moodys/and SandP will provide ratings to help

No_Band8451

Depending on the level of your desire to gamble, tax preferences, and tolerance for other risk factors... the options below are good. I'm mixing up VCLT and EDV for my own purposes. ​ VWALX VWEAX VCLT EDV

MaximumCarnage93

VWALX - muni fund. Does about 2.8 pct annualized coupon (paid monthly) with no fed tax. If you are in high tax bracket, not a bad option and 9x better after tax return than an online savings account. While there is always risk to principal and has seen volatility, year-to-year has generally been incrementally positive.

pimpenainteasy

It's actually pretty easy to see with a stock chart, with dividends reinvested. I use Morningstar and compare SPY with VGLT or some other bond funds I invest in like VWALX and look at it over a time series. SP500 had 50% and 57% corrections in 2000 and 2009, which is why the bond funds come out on top for so long. Anyway I'm referring specifically for people who are drawing down funds rather than reinvesting. When you are adding funds vs removing funds, there are different dynamics. If you are removing funds you have to deal with the asymmetry of convexity--a 50% drawdown requires a 100% increase just to break even. As you are drawing down funds, downward volatility moves tend to get multiplied.