This week Jim Dahle did a great job answering the question of what bond fund you should use in a portfolio. Perhaps what I like most about the article is the introduction, in which it makes it clear that this is not a matter of critical importance.
What bond funds to use is an important question in the sense that when you build a portfolio, you do you have to choose something you want to use for fixed income (unless you go with a full allocation). But it is very likely that your likelihood of achieving your financial goals will not be significantly affected by the use of a total bond fund or, for example, a medium-term Treasury fund. It doesn’t even come close to one of the most important financial planning decisions.
Thanks for reading!