Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Dividend paying stocks, REITs and etc should NOT be considered as substitutes for bonds/bond funds since their risk profiles are not the same. For example, during 2008 credit crisis Vanguard Dividend Appreciation Index fund (VDAIX) lost 26.6% while S&P 500 lost 38%. The dividend paying component lessened the magnitude of lost; Barclays Agg US Bond Index gained 5.2% instead.
Comments