A growth element is important to help protect you against rising interest rates, says senior analyst Travis Miller.
Core bond funds have cut their interest-rate sensitivity relative to their benchmark, and Morningstar's Eric Jacobson says the dramatic changes in correlations have skewed common metrics, such as beta.
Bond-fund investors need to focus on duration, credit quality, and relative yields to better understand how much risk they're taking on, says Morningstar's Eric Jacobson.
Morningstar's Eric Jacobson outlines three short-term bond funds that can protect against rate sensitivity, but mind the risks as such funds aren't cash substitutes.
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