Ray Hendon

Long and Junk Bond ETFs: Stepchildren of Fixed Income Investing

Indexor:
Thanks for your comments and kind words. Personally I think the short and intermediate ETFs you hold are about right. With BND you do go out the yield curve a little, but you also get rewarded a couple of points of yield for doing it. If you can stick with it during periods of rising interest rates, then you will maximize your dividend income and probably keep ahead of inflation.

I'm not completely in agreement with the 1-Y T idea. It condems the holder to a low yield, and at times will not keep up with inflation. To me, the weak spot for Dimensional Funds is on fixed income. I may be wroing, but I don't think they have very good imagination on fixed income products. On the other hand, there is always some good in being conservative in your holdings.

There is validity on their take on this subject, but validity depends much on the needs of the individual investor. It may be true for some, but not the best idea for others, depending on their personal situation. I certainly do not like it as a blanket prescription.

Best wishes,

Ray