Originally Posted by bamboo1947
Does it make any sense to have both funds and try to maximize your total return as market conditions change. Also, would it be wise to have VFIIX (GNMA) as an extra 'kick' when interest rates rise?
I don't see the goal of bonds in a portfolio to maximize total return. I'd much rather they serve as a safe asset so that when stocks go down 20% my portfolio as a whole only goes down 10%.
Also, re GNMA -- if interests rates rise won't they likely get hit worse than other bonds since the duration will increase?