Q: I really like Money Matters. You recently talked about owning the right bond funds. Do you consider Vanguard’s Total Bond Market Index (VBTSX) to be in that category. It’s about 10% of our mix.
A: Thanks for listening to the show. We love hearing from dedicated, long-time listeners.
The Vanguard Total Bond Market index would be classified as a bond fund under the “Own Your Age” theme. This fund should be representative of the entire bond market including treasury securities, corporate bonds, and agency bonds. Considering, this fund covers all types of bonds, it could serve as a core of someones bond portfolio depending on the risk tolerance, yield expectations, return expectations and time horizon.