History Says This Is the Smartest Bond ETF to Buy With $1,000 Right Now
If you want to buy bonds, just buy "all" the bonds. This aggregate bond ETF makes it easy.
Overview
Times might feel uncertain and risky for bond investors. The Federal Reserve just hiked interest rates at its most recent meeting in September. "Trumpflation" and high levels of government debt are pushing up interest rates on long-term U.S. Treasury bonds. Is now a good time to buy bonds?
It depends on your goals as an investor. If you believe that interest rates are likely to stay steady or drop in the future, now could be a good time to lock in today's strong yields to earn income from bonds. But history shows us that bonds can be risky. No one knows which types of bonds (government or corporate) will outperform in the future. No one knows what will happen to interest rates, or which bond duration (short-term or long-term) will outperform others.
Details
That makes it important to diversify your bond holdings. One simple way to invest in a diversified portfolio of bonds is to buy the iShares Core U.S. Aggregate Bond ETF (NYSEMKT: AGG). This fixed-income exchange-traded fund (ETF) lets you own thousands of bonds with a mix of durations. As of this writing, AGG is paying a 30-day SEC yield of 4.82%.
Source
Originally published at www.fool.com.