Vanguard Total Bond Market ETF
BND (NYSE)
The Vanguard Total Bond Market ETF (BND) offers broad exposure to U.S. investment-grade bonds, making it a solid choice for diversification. With a low expense ratio of 0.03%, it provides an attractive dividend yield of 3.85% and has delivered a 1-year return of 4.29%. Although the fund has experienced volatility, it remains a reliable option for investors looking for a balanced bond portfolio.
Pros:
- Broad U.S. investment-grade bond exposure
- Low expense ratio of 0.03%
Cons:
- Underperformed cash over the past decade
- Vulnerable to price declines from interest rate increases
The Vanguard Total Bond Market ETF (BND) may be suitable for conservative investors seeking diversification within their bond portfolios and a steady income through its competitive dividend yield. While the fund has faced challenges in recent years, its low expense ratio and broad market exposure can appeal to those looking for a long-term investment strategy in the fixed-income space.
