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.
The $700 billion that has flowed into taxable- bond funds in the last five years is larger than flows into U.S. equity funds in the late '90s, but investors today seem to be reacting to fear and not chasing performance.
The outlook forbonds is just as cloudy as ever, but Morningstar's Miriam Sjoblom and Marta Norton offer helpful tipsfor setting the right expectations and creating a game plan in today's challenging bondmarket .
Panelists at the Morningstar 2013 ETF Invest Conference addressed trending topics of high-yield duration, bank-loan vehicles, near-term credit and interest-rate risk, and the tendency forbondETFs to smooth volatility.
This article represents opinions of the author and not those of his firm and are subject to change from time to time and do not constitute a recommendation to purchase and sale any security nor to engage in any particular investment strategy. The information contained here has been obtained from ...