I already have an asset allocation that works for me and that includes a US bonds portion. For reasons of convenience and flexibility (and probably laziness ...) I have been using a Vanguard index fund to hold the bond portion of my asset allocation.
My investment horizon is 25+ years before I would consider touching the money.
Right now my bond fund is the Vanguard Total Bond Market Index Fund (VBMFX), because a few years back I was limited in the funds I could choose from in my 401k plan. This fund holds a mix of short/mid/long term bonds.
But now that I no longer have that constraint, I am planning to switch to the Vanguard Long Term Bond Index Fund (VBLTX) since my investment is long-term oriented.
The expense ratio is a bit lower (0.18% compared to 0.20%) and it would seem to me that long term bonds are more aligned with my savings goals and investment horizon.
But before I make the switch I just thought I'd ask what you guys think. Do those of you who use bond index funds as part of your asset allocation stick with a mid-range bond index fund or go with a long/mid/short fund as is appropriate for your timeline?
My investment horizon is 25+ years before I would consider touching the money.
Right now my bond fund is the Vanguard Total Bond Market Index Fund (VBMFX), because a few years back I was limited in the funds I could choose from in my 401k plan. This fund holds a mix of short/mid/long term bonds.
But now that I no longer have that constraint, I am planning to switch to the Vanguard Long Term Bond Index Fund (VBLTX) since my investment is long-term oriented.
The expense ratio is a bit lower (0.18% compared to 0.20%) and it would seem to me that long term bonds are more aligned with my savings goals and investment horizon.
But before I make the switch I just thought I'd ask what you guys think. Do those of you who use bond index funds as part of your asset allocation stick with a mid-range bond index fund or go with a long/mid/short fund as is appropriate for your timeline?