Bond Funds/ETFs Can Deliver Meaningful Returns; Cash Can't
In my July 2020 article on this site, I urged investors to shun money market funds in favor of bonds for the portion of their portfolios not invested in stocks.
Over 11 months later, cash has returned close to nothing while bond funds I recommended have returned 3.69%, not annualized.
With the Fed on hold, interest rates are unlikely to go up in the near future meaning that bond funds can return at least their dividends, if not more.
Finally, I discuss different categories of bond funds and my estimation of their future prospects.
We have been adding FBND in mama retired portfolio