The Bond ETF Most Investors Overlook -- and Why It Belongs in Your Portfolio Right Now
These bonds offer the best features of other, more familiar bonds.
Overview
Bonds play an important role in helping investors diversify their portfolios. One of the easiest ways to add bonds to your portfolio is through an exchange-traded fund (ETF).
Most investors likely invest in bond ETFs focused on U.S. treasuries or investment-grade corporate bonds. There's nothing wrong with that as they're high-quality fixed-income investments. However, it causes many investors to overlook the combination of quality and yield offered by mortgage-backed securities (MBS). One of the best ways to invest in these bonds is the Vanguard Mortgage-Backed Securities ETF (NASDAQ: VMBS). Here's why it belongs in your portfolio right now.
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Originally published at www.fool.com.