If You Invest $10,000 in This Bond ETF Today, Here's What History Says It Could Deliver in 20 Years
The Vanguard Total Bond Market ETF is the largest bond-focused ETF.
Overview
The Vanguard Bond Market ETF (NASDAQ:BND) is the largest bond ETF with nearly $162.3 billion in assets. If you invested $10,000 into BND today, it could grow into over $18,000 in 20 years, given its historical 3% annualized return since inception (assuming you reinvest your interest payments). That's likely a lot less than you'd earn if you invested the same amount in an S&P 500 index fund. However, bonds are income generators and portfolio stabilizers, not wealth-building tools.
Here's a look at why you might still want to consider investing in this top bond ETF, despite its low historical returns.
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Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.