Mentions

The Vanguard Total Bond Market ETF is recommended for 'All-Stock' investors to diversify across asset classes and mitigate volatility risk. BND holds over 11,000 bonds, including US Treasuries and corporate bonds, which are driven by interest rates and credit rather than stock market earnings, thus providing a different risk profile. Bonds tend to hold up better during recessions and can even produce positive returns when interest rates fall, as demonstrated during the pandemic crash where BND saw a positive return. It also provides a 4% dividend yield, offering a source of income and cash to buy into stocks during market downturns.