Vanguard (and others) have funds that invest in short/intermediate/long term Bonds – either focusing on Treasuries, general bonds, or other types of bonds. Vanguard’s Treasury funds are short (2 years duration), Intermediate (5 years), and long (15 years). I haven’t checked but probably similar for their corporate bond funds, TIPS, etc.
Are there Mutual Funds or ETFs (I prefer MFs) that invest in finer increments in terms of duration/maturity?
For Example: Instead of a 5-year ladder of individual Treasuries with 1-year rungs, I might instead want to buy 3 low-cost funds, having a duration of 1, 3, and 5 years (or 2, 4 and 6 years, or ...). The advantage being that it’s a completely hands off investment (when I’m gone, I don’t see my wife keeping up a ladder), it’s easy to invest additional money, dividends get automatically reinvested, better diversity for corporate bonds (I don't want to pick individual corporates myself), and if I ever need the money, I can remove it from the 1-year fund with potentially less loss of principal because of the short duration.
If these don’t exist, I could potentially create a ladder of treasuries that autorolls – which can be done at Fidelity (I just opened an account at Fidelity).
Thanks
Are there Mutual Funds or ETFs (I prefer MFs) that invest in finer increments in terms of duration/maturity?
For Example: Instead of a 5-year ladder of individual Treasuries with 1-year rungs, I might instead want to buy 3 low-cost funds, having a duration of 1, 3, and 5 years (or 2, 4 and 6 years, or ...). The advantage being that it’s a completely hands off investment (when I’m gone, I don’t see my wife keeping up a ladder), it’s easy to invest additional money, dividends get automatically reinvested, better diversity for corporate bonds (I don't want to pick individual corporates myself), and if I ever need the money, I can remove it from the 1-year fund with potentially less loss of principal because of the short duration.
If these don’t exist, I could potentially create a ladder of treasuries that autorolls – which can be done at Fidelity (I just opened an account at Fidelity).
Thanks
Statistics: Posted by LISD — Wed Jul 31, 2024 7:36 pm — Replies 12 — Views 681