Hacker News new | ask | show | jobs
by JumpCrisscross 2858 days ago
> You can get 99% of the benefit of this full ladder just using a few etfs

Bond funds churn. Not only does this create tax implications, it also means instead of earning 2% (when prevailing rates are 3%), you lose 1%.

Bond funds are better bets for foreign, high-yield and other creditors where the credit component dominates the rate component. Paying someone to buy your Treasuries, on the other hand, is wasteful.