VBLTX is the fund. It has a 3.58% yield. Less than 2 months ago it was up over 20% on the year in total return. Despite the steep drop the last week it is still selling at $13.66. My cost basis in the fund is $12.74. At this stage I'm still sitting on a gain that is beyond what I would have expected when I bought into it several years ago.
But I'm not going to go around in circles with you cherry picking data to argue intermediate vs long term bonds. You might as well argue if Galen Rupp or Matt Centrowitz is the better distance runner.
I would rather know if you think we are on the cusp of some greater inflationary period that is going to long term bond prices way down. And if so, why.
Ghost of Igloi wrote:
Stocks are trading at two standard deviations above the norm so I leave it to you to decide what your stock/bond allocation should be. In regards to the Vanguard Long Term Bond ETF the effective duration is 15.6 years, which means a 1% increase in rates results in a 15% loss of principle. The interest rate risk far exceeds the deflation hedge. I would rather be in Doubleline Intermediate (DBLTX) or MetWest intermediate (MWTIX).