Fixed Income

Bonds

Bonds are loans to governments or companies, paying interest over time. They are considered lower risk than stocks but offer lower returns. Prices are affected by interest rates and credit risk.

Bond/ETF Table

Top 20 Bond/ETFs by Change %

Bond/ETF Ticker Price Change % Change $ Open High Low Prev Close Market Cap
iShares National Muni Bond ETFMUB$107.65+0.51%+$0.55$107.68$107.52$107.10
Vanguard Total International Bond Index FundBNDX$48.53+0.31%+$0.15$48.57$48.51$48.38
State Street SPDR Bloomberg High Yield Bond ETFJNK$97.51+0.22%+$0.21$97.64$97.46$97.30
iShares iBoxx $ High Yield Corporate Bond ETFHYG$80.88+0.21%+$0.17$80.97$80.84$80.71
iShares TIPS Bond ETFTIP$110.25+0.11%+$0.12$110.31$110.11$110.13
iShares 1-3 Year Treasury Bond ETFSHY$82.89+0.05%+$0.04$82.93$82.88$82.85
iShares Core U.S. Aggregate Bond ETFAGG$100.120.00%$0.00$100.20$100.03$100.12
iShares 7-10 Year Treasury Bond ETFIEF$96.480.00%$0.00$96.54$96.34$96.48
Vanguard Short-Term Corporate Bond Index Fund ETF SharesVCSH$79.810.00%$0.00$79.87$79.80$79.81
Vanguard Total Bond Market Index FundBND$74.26-0.01%$0.01$74.32$74.20$74.27
Vanguard Intermediate-Term Corporate Bond Index Fund ETF SharesVCIT$83.95-0.05%$0.04$84.09$83.93$83.99
iShares 20+ Year Treasury Bond ETFTLT$87.79-0.08%$0.07$88.01$87.48$87.86
iShares iBoxx $ Investment Grade Corporate Bond ETFLQD$110.55-0.10%$0.11$110.80$110.53$110.66

Key metrics

  • Yield to Maturity
    Expected return if held to maturity; incorporates price, coupons, and time.
  • Duration
    Rate sensitivity; roughly % price change for a 1% rate move.
  • Credit Rating
    Default risk proxy from agencies (AAA to CCC).

Fees & costs

  • Spread/markupsTypical: 0.05–1.0%
    Varies widely with liquidity and lot size.

Risks

  • Interest rateMedium
    Rising rates push prices down; long duration is most sensitive.
  • Credit (Treasuries)Low
    Government bonds carry minimal default risk; corporates vary.

How to get exposure

  • Treasuries
    Direct from TreasuryDirect or via ETFs.
    7–10Y (IEF)Aggregate (AGG)
  • Corporate/Muni funds
    Diversified bond exposure via funds.

Bonds Tracker

Common mistakes and fixes

  • Reaching for yield without considering duration/credit
  • No laddering to match cash needs
  • Ignoring after-tax returns for munis vs corporates
Fix: set target weights, automate contributions, and rebalance on schedule.

Top instruments to use

10Y TreasuryiShares Core U.S. Aggregate Bond ETF (AGG)
How to pick
  • Duration fits horizon
  • Credit quality appropriate
  • Diversified exposures

Bonds playbook

Liability matching
  • Ladder maturities to meet cash needs
  • Blend duration for rate exposure
  • Stick to investment grade for core
Income focus
  • Add credit incrementally (IG → HY)
  • Use short-duration in rising-rate regimes
  • Diversify with TIPS for inflation
Risk management
  • Treasurey exposure as equity hedge
  • Avoid concentration by issuer
  • Mind call risk and convexity
What to watch
Rate decisionsInflation printsCredit spreadsYield curve shape
Risk rules
  • Define target allocation before buying
  • Position size based on risk, not conviction
  • Rebalance on schedule or bands
  • Prefer low-cost, diversified vehicles for core
Execution tips
  • Use limit orders for thin products
  • Mind bid/ask spreads and liquidity windows
  • Automate contributions where possible