Bond indexing, sometimes called passive bond investing, is a popular approach to building fixed income allocations.
A bond index strategy is a portfolio of bonds that seeks to track the performance of a market index, such as the Bloomberg Barclays U.S. Aggregate Bond Index.
The Barclays Aggregate U.S. Bond Index is commonly used, as it covers most U.S.-traded bonds and some foreign bonds.
The Vanguard Total Bond Market Index Fund ranks among the best Vanguard index funds to hold in the fixed-income space.
Most broad-based bond index funds invest in government securities, including those from the U.S. government.
Most investors consider bonds as generally safe investments, even though there will always be risk involved. But safer investments also tend to generate smaller returns in the long term.
In this video, Jack Bogle talked about total bond index tracking and how to invest in it to get a good return.
Warning: This video is to show you John Bogle’s view about bond index funds. Please do your research before doing any investment. A good balance between return and risk is the key to investment success.
Source: Finance Jane
