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baskethead | 3 years ago

No. As rates rise, when you sell your lower yielding stocks you are selling low and buying high, iteratively. Rising rate environments like we are in right now are a disaster for any bond etf that doesn't have short duration. You need to wait until interest rates have peaked or at least eased off.

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thunky|3 years ago

You seem to be only concerned with the price of the fund while ignoring the yield. You have to look at the total return.

Yes you're selling lower yielding bonds but like I said your replacing them with higher yielding ones, which contributes to your total return. This is true for short and long term funds. The key is to buy a bond fund with a duration that matches your planned holding time.