pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Perhaps, but OTOH, with 10 equal rungs the weighted average maturty would only be 5 years... by comparion the weighted average maturity of BND is 8.8 years and of Vanguard's Intermediate Term Treasury Fund is 6.1 years.
Right now, I'm short at 3.3 years but that was intentional while rates were rising. When it appears that rates have plateaued then that would be the time to extend.
But if someone wants to use these target maturity ETFs to try to replicate a long term bond fund but with more control over cash flow, a 10 year ladder wouldn't be a big mistake, even if rates rise a bit, plateau for a while and then recede.
It depends on how fine you are trying to tune things.
Right now, I'm short at 3.3 years but that was intentional while rates were rising. When it appears that rates have plateaued then that would be the time to extend.
But if someone wants to use these target maturity ETFs to try to replicate a long term bond fund but with more control over cash flow, a 10 year ladder wouldn't be a big mistake, even if rates rise a bit, plateau for a while and then recede.
It depends on how fine you are trying to tune things.