Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 12-01-2012, 02:49 PM   #21
Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Mississippi
Posts: 1,825
Originally Posted by MooreBonds View Post

HOWEVER - you must look at what the bond ETF is currently traded at, in relation to the Net Asset Value. If all of the bonds in the ETF's portfolio are priced at 100 and the NAV is $10, but the ETF is trading at $12 to have a yield to maturity that matches the rest of the yield curve, then you are guaranteed to lose $2/share at maturity, even though the ETF's bonds (assuming no defaults) will mature at the price they're at now.
That is true in general. The document at Bulletshares claims their defined maturity ETFs take that into account by adjusting the payout with the change in YTM.

rbmrtn is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-12-2012, 12:05 PM   #22
gone traveling
Join Date: Mar 2007
Posts: 559
i like trrbx t rowe price 2020 fund

gerrym51 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 06:02 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.