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    Vanguard Bond Holdings (e.g. VBTLX) versus holding in settlement fund (e.g. VMFXX)

    @mojoboy31 There’s no way to know, unless you have a crystal ball. Here’s what I will say, both funds are constantly buying and selling bonds. The longer term bonds are more sensitive to interest rate changes but also lock in the rate for a much longer period of time. So in the example where...
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    Vanguard Bond Holdings (e.g. VBTLX) versus holding in settlement fund (e.g. VMFXX)

    @mojoboy31 Correct. Although yield and return are 2 different things. If the Fed starts lowering rates, the NAV of the bond fund will rise. Which is another component of total return.
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    Vanguard Bond Holdings (e.g. VBTLX) versus holding in settlement fund (e.g. VMFXX)

    @mojoboy31 Money market fund maintains $1.00 per share and earns interest. The bond fund has a NAV that will move, which allows you to sell at a gain or loss, and in addition earns interest. The reason for the longer term bond fund having a lower yield - the yield curve is inverted so short...
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