Most Investors Pick the Wrong Bond ETF. I'd Buy BND and Never Look Back.
Bond investing can be complicated. The best bond ETF lets me keep it simple and just buy "all" the bonds at once.
Overview
The bond market has been the biggest story on Wall Street recently, with some yields on U.S. Treasury bonds hitting new long-term highs. For example, on Tuesday, the 30-year Treasury bond yield hit its highest level since 2002.
Higher yields on bonds can be a double-edged sword. On the one hand, bond investors want to earn strong yields on their bonds, because that's the fixed income that is the reason for buying bonds in the first place. On the other hand, when bond yields go up, prices of existing bonds go down. Rising Treasury yields can be a sign that bond investors are getting nervous and are demanding to get paid better for the risks of holding bonds.
Details
Instead of trying to pick bonds based on sector or type (like U.S. Treasuries vs. corporate bonds, or investment-grade vs. junk bonds), and instead of worrying about bond durations and interest rate risk, here's what I do with my bond investments: I buy the Vanguard Total Bond Market ETF (NASDAQ: BND).
Source
Originally published at www.fool.com.