|Expense Ratio (net)||0.91%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||High|
|Beta (3Y Monthly)||0.69|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Dec 31, 1996|
Rising interest rates are no longer the primary concern for income investors, but other factors must still be considered threats against bonds.
The linchpin of the Bucket Approach is one to two years' worth of living expenses set aside in cash instruments. By using broad-based index funds, you can easily determine which holdings to peel back on and where to add. Because many retirees have large shares of their portfolios in low-returning investments like cash and bonds, focusing on very low-cost investments is an easy way to enhance take-home returns.
Most core U.S. stocks and bond funds incurred single-digit losses for the year, but even small drops can be unnerving when you're retired. What made 2018 especially painful is that neither stocks nor bonds impressed. Bond yields rose, leading the Barclays Bloomberg Aggregate Index to post just a tiny gain for the year, but many bond funds endured losses.