Bond Laddering With iBonds ETFs

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Summary

  • Bond ladders can be used to hold bonds to maturity during rising rate environments.
  • Implementing ladders in practice can be time consuming and inefficient.
  • iBonds ETFs are term-maturity ETFs that can simplify the process of building a bond ladder.

The word bonds on wooden cubes with office desktop. Business finance stock exchange

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By Karen Veraa, CFA

The Case For Bond Laddering

With interest rates increasing in 2022, many investors are looking to navigate the market and not lose money on bonds. Bond prices typically fall when interest rates rise. One strategy

Five year ladder illustration

Bar chart showing 20% of the portfolio allocated to each of the 5 years in a hypothetical bond ladder. An arrow represents that after the first year, proceeds from the maturing bond can be reinvested in the Year 6 bond (BlackRock)

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