Your Default Bond Fund Pays 4%. So Does BSV, Without the 30-Year Risk You Never Agreed To
· finance.yahoo.com
Most investors assume their bond allocation is the safe, boring part of their portfolio, but the fund sitting in your 401k default menu may be carrying a risk you never consciously accepted and almost certainly were never warned about.
Bond prices move inversely to yields, and the size of that move scales with how long the bond has left to mature. A twenty-nine-year bond gives yield changes tw...