Please help. I can’t figure out what to put in my IPS for the fixed income side of my asset allocation.
—BND is the touted component of the 3-legged portfolio, but it has the negatives of holding mortgage backed securities and not holding any TIPS.
—VGIT (Interm-term Treasures) is touted as the safest in times of stock market turmoil, but it lacks the “total feature” of BND. And it has the poorest returns of nominals.
—BIV (interm-term index) has the positives of best annualized return and not holding any MBS, but it has the downsides of holding a lot of corporates and thus being riskier.
—VIPSX (inflation-protected) has inflation protection, but nothing else. There is a thread in which the theme is that investing in any fixed income other than TIPS is taking an uncompensated risk on inflation meeting expectations. So why is this not the core bond of the 3-fund portfolio?
For a mid-stage accumulator, what to do? How to sort through all the pros/cons and pick one?
—BND is the touted component of the 3-legged portfolio, but it has the negatives of holding mortgage backed securities and not holding any TIPS.
—VGIT (Interm-term Treasures) is touted as the safest in times of stock market turmoil, but it lacks the “total feature” of BND. And it has the poorest returns of nominals.
—BIV (interm-term index) has the positives of best annualized return and not holding any MBS, but it has the downsides of holding a lot of corporates and thus being riskier.
—VIPSX (inflation-protected) has inflation protection, but nothing else. There is a thread in which the theme is that investing in any fixed income other than TIPS is taking an uncompensated risk on inflation meeting expectations. So why is this not the core bond of the 3-fund portfolio?
For a mid-stage accumulator, what to do? How to sort through all the pros/cons and pick one?
Statistics: Posted by WhitePuma — Sun Aug 11, 2024 10:52 pm — Replies 5 — Views 603