You are correct in rising interest rate environments where you believe the rates will continue to rise. With bond funds you can get the same yield as the ladde

You are correct in rising interest rate environments where you believe the rates will continue to rise. With bond funds you can get the same yield as the ladder (interest payments) if you hold forever and never sell, but if you sell you may take a hit because the price has gone down. That doesn't happen with ladders since you always get paid out the face value.