After reading the Mcq Thread about can you do better than Total Bond market. I decided to do a second look at my choice of using Total Bond market. In a nutshell, the thread indicate Intermediate Treasury might be a better fit as a companion fund to US stock index due to low correlation. When I look at the historical return, it looks like Intermediate Treasury has a higher return (but also higher volatility). See Link.
Can you think of any downside to replacing Total Bond Market with Intermediate Treasury. Total Bond is esssentially 80% Treasury an so it's sort of like comparing S&P 500 to Total Stock market. Intermediate is a lot pricer expense-wise though.
Can you think of any downside to replacing Total Bond Market with Intermediate Treasury. Total Bond is esssentially 80% Treasury an so it's sort of like comparing S&P 500 to Total Stock market. Intermediate is a lot pricer expense-wise though.
Statistics: Posted by gavinsiu — Mon Jun 24, 2024 6:48 pm — Replies 11 — Views 913