A negatively yielding investment would seem to have no place in anyone’s investment portfolio. But there’s a sound reason why an allocation to international bonds—some with negative yields—is fundamental to Vanguard Target Retirement Funds.
Vanguard Investment Strategy Group’s Brian Scott explains why index funds make good underlying funds for a target-date fund. Unlike the children of Lake Wobegon, all funds are not above average.
Vanguard Investment Strategy Group’s Brian Scott explains why a rising interest environment shouldn’t cause investors to abandon target-date funds that offer bond index strategies.