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I agree for long-term investments a fund might be better (ex. in a retirement account mixed with equity funds) but if you bought those bond funds in the past fe
by jterenzio 8y ago
I agree for long-term investments a fund might be better (ex. in a retirement account mixed with equity funds) but if you bought those bond funds in the past few years and sold them you might not have made much of a return. For example in the past 1 year the price of VGSH went from 60.83 to 59.87 so you lost over 1% on the price change which cancels out most of the interest yield. My point is that for short-term savings in a rising rate environment this can work better.
- jhfdbkofdcho 8y agoIsn’t that ignoring dividend payouts? This says it’s like -0.2% over the last 12 months including payouts vs -1.6%. No idea how accurate this is but it’s an important correction to just the price returns if you’re talking about holding the shares. https://www.etfreplay.com/chart_totalreturn.aspx https://www.etfreplay.com/chart_totalreturn.aspx