Resource · Investing
The Bonds in Your Portfolio
Why you own bonds, how they actually behave, and what to expect across rate environments.
Stocks and bonds do different jobs in a portfolio. This piece explains, in plain language, what bonds are for and how we choose them.
What’s inside
What bonds do
Three jobs bonds play: steadying the portfolio, providing regular income, and setting aside money for specific future needs.
What drives bond returns
How a bond’s length, the borrower’s credit quality, and the currency it’s issued in can affect expected returns.
Three ways to invest in bonds
Forecasting interest rates, tracking an index, and a systematic approach that uses current market prices instead of predictions.
How we build the bond portion
How we adjust maturity, credit, and currency within set ranges, drawing on research from Dimensional Fund Advisors.
What it means for retirement
Why bond design matters most once you’re drawing income, and our five commitments for this part of your portfolio.
Understand your portfolio
Download the piece and bring your questions to your next review. Past performance is no guarantee of future results.
This content is for informational purposes only and is not individualized advice.