Target-date maturity ETFs

mxbuz

Confused about dryer sheets
Joined
Jun 21, 2023
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Hi all, I'm getting ready to start a bond(s) ladder in our tax deferred accounts . I think I'd like to use mainly Treasuries, Tips, Corporate's and go out about ten years or more. These would be held to maturity and used for income.The number of individual bonds would start to add up. I wanted to get other's thoughts on the target-date maturity ETFs to keep things a little simpler/neater. Do any of you use these products and find them useful in managing your individual bond portfolio? Others that have used spreadsheets of bond purchases, would you use these target date ETFs if you were starting over now? Thanks for any information you may add.
 
Whenever I have done liability matching I always use Treasuries (Tips) in IRA; I'm not a fan of individual bonds except for treasury issue due to the diversification challenge and the liquidity premium.
 
Hi all, I'm getting ready to start a bond(s) ladder in our tax deferred accounts . I think I'd like to use mainly Treasuries, Tips, Corporate's and go out about ten years or more. These would be held to maturity and used for income.The number of individual bonds would start to add up. I wanted to get other's thoughts on the target-date maturity ETFs to keep things a little simpler/neater. Do any of you use these products and find them useful in managing your individual bond portfolio? Others that have used spreadsheets of bond purchases, would you use these target date ETFs if you were starting over now? Thanks for any information you may add.
I don't currently have any target maturity bond ETFs but have owned Bulletshares in the past and still have them on the radar.

I'm not keen on them for Treasuries. Treasuries have no credit risk and are liquid so it is just as easy and straight forward to buy a Treasury maturing in the year I want to target. Ditto for TIPs.

However, for corporate bonds, I'm more of a fan, but not right now with corporate spreads as narrow as they are... but perhaps someday.

If you have a 10 year ladder across Treasuries, TIPS and Corporates at a minimum you would have 30 positions, right?

As points of reference:
10 year Treasury ladder using BlackRock iBonds:
1736996036489.png

10 year Corporate ladder using BlackRock iBonds:
1736996094016.png

10 year Corporate ladder using Invesco BulletShares:
1736996165009.png
 
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I recently helped an elderly friend into WasmerSchroeder, a managed bond portfolio. Did so expressly to avoid the question of managing it all.
 
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