Usually for "diversified handful of mutual fund for long term growth" type portfolios, I often see just a single total bond fund (SCHZ is Schwab's ETF version that I hold there). This mostly holds US Government bonds and the dividends are somewhat low yield (2.33%). What place does a higher yield bond fund have in these types of portfolios? I am thinking maybe 50% SCHZE 50% HYLB (Deutsche X-trackers USD High Yield Corporate Bond). This particular fund doesn't have much history but has a ~6% yield based on recent months. Looking at the holdings these seem to be mostly shorter term bonds, which if I understand are less affected by inflation and interest rates than long term bond funds.
Just curious as to why I don't see more people holding more corporate bond funds.
Submitted October 03, 2017 at 11:41AM by sowoah http://ift.tt/2yWKhIW
