I'm looking to transfer some of my holdings in my IRA to a bond fund and am debating between the options. VBMFX is the total bond market and looks fairly safe, but bond funds like VBLTX (long-term bond fund) have a lot better return (25.27% vs. 9.78% over last 10 years).
From what I understand, VBLTX has a higher return because it has more exposure to interest rate risk, since interest rates have been low for the past 10 years then return on long-term bonds has been higher. Would that mean that VBMFX would be a better holding long-term since it's unknown whether interest rates will increase or decrease?
Submitted May 19, 2017 at 02:52PM by ImNotAtWorkTrustMe http://ift.tt/2r0XT4O
