When you invest in a total bond market index fund, you are adding exposure to the entire U.S. bond market to your portfolio. One such fund is Vanguard Total Bond Market Index Admiral (VBTLX), managed by the Vanguard Group based in Malvern, PA. Since VBTLX made its debut in November, it has gained popularity among investors looking for a diversified and low-cost option for fixed income exposure.
Before 1986, investors looking to incorporate bonds into their portfolios faced limited and often challenging options. However, the introduction of index funds like VBTLX has made it easier for investors to access a broad range of bonds in a single investment vehicle.
Compared to the category average of 12.67%, the standard deviation of VBTLX over the past three years is 6.09%. Over the past 5 years, the fund has provided consistent returns with lower volatility compared to its peers.
Sara Devereux, the global head of fixed income at Vanguard's Investment Management Group, spoke exclusively to CNBC's Bob Pisani about the benefits of investing in bond index funds like VBTLX. She highlighted the importance of diversification and low costs in building a well-balanced portfolio.
Ticker symbols related to bond funds like VBTLX include BND, FOSFX, FOSKX, NAESX, PAVLX, TBGVX, TRPIX, TRVLX, TRZAX, VB, VBK, VBMFX, VBMPX, VBTIX, VBTLX, VEIEX, VEIPX, VEIRX, among others.
Choosing investments can feel overwhelming, with thousands of options available. However, bond funds like VBTLX provide investors with income and stability, making them worthy additions to well-balanced portfolios. These funds have consistently outperformed the broader market at a fraction of the cost of average fixed income products.
This article falls under the category of 'Research' and is classified as 'Popular.' It delves into the benefits of investing in VBTLX and explores the advantages of including bond index funds in a diversified investment portfolio.
