The benchmark index doesn't reflect the true allocations of U.S. bond investors, and the industry needs to look again at corporate-bond index funds or rework the current index, says Vanguard founder Jack Bogle.
With very low interest rates, as well as uncertainties about inflation and the muni market, it's time for investors to really rethink the purpose of their fixed-income allocations, says Fidelity's Christine Thompson.
The outlook for bonds is just as cloudy as ever, but Morningstar's Miriam Sjoblom and Marta Norton offer helpful tips for setting the right expectations and creating a game plan in today's challenging bond market.
Following a first quarter that saw riskier assets outperform, and a second quarter marked by a flight to Treasuries, investors would do well to review the suitability of their current portfolio allocations, says Morningstar's director of fixed-income research.
Many managers are of the mind that rates have gone about as far as they're going to go for a while, so investors probably don't want to exit the bond market while their funds are down, reports Morningstar's Eric Jacobson. Plus, get an update on fund category performance in the second quarter as well as updates on fund leaders and laggards, including PIMCO Total Return.