If You Invest in ONE Bond ETF, Make it This One

As a fervent investor, I'm frequently curious about how successful investors make millions of dollars from their investments. I have over $545K in equity from the sale of my house, but I'm not sure what to do with it. Should I invest in stocks now or should I wait for a better opportunity?

My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit.

The media is currently barraged with a lot of economic data right now. It takes a lot to see beyond the whole ocean of news on focus on what is important, which is that no matter how low stocks go, they always bounce back. I really ignore all the news and keep investing. I recently allocated about $121k to put in the market as we anticipate a crash. Any recommendations?

2023 was great year for BDCs. CSWC has been around since the 90s and ha never cut its regular Div which is more than 10 pct. Also pays special divs frequently. Is as as volatile S and P but long term chart looks scarier than it really is due to spin off of large asset CSWI in Sept 2015 to shareholders. BDCs get same tax treatment as reits (not taxed as long as they pay 90 pct of profits out as dividends). CSWC is rare internally managed BDC which is model considered most favorable to shareholders. Almost all its lending is senior floating rate debt so it makes even more money when rates rise as long as it keeps non accrual and default rates low. It does not lend to distressed compnies and avoids boom bust sectors like oil field services etc. It was the best performing BDC of 2023 according to BDC reporter and forecasts for 2024 look good so far. One note of caution. If rates fall fast or if bankruptcies spike this could be viewed as a headwind to BDCs in general and market sentiment towards BDCs could change. And stock price would likely be hit at least as hard as S and P in recession. Nevertheless I would recommend that every income hungry investor learn about BDCs and keep good ones like CSWC on their radar screens.

if you're just using bonds to protect your money, why not just buy gold?

How do you feel about IGBH as a bond holding? I like its history so far but it is very young and not tested through drastic economic swings such as another '08.

Is it better to buy the ttps fund in a taxable account or in an ira account?

Hi Joseph, can you please compare Emerging Markets bonds versus High Yield bonds. Which one is riskier? Professor Burton Malkiel endorses Emerging Markets ETF in his book Random Walk. Thanks in advance.

My spouse and I are diversifying our long-term investment portfolio by adding various stocks and ETFs. We've allocated $220k to begin with, focusing on inflation-indexed bonds and companies with strong cash flows. I think the current market presents a good opportunity for long-term gains, but I'm also interested in learning ways to make short-term profits.

I think most people should hold a small % of defensive assets. I hold roughly 10% of my entire portfolio in defensive assets at 25yr. When I get closer to retirement I'll slowly increase this %

Videos of this ilk plague the Internet, and are best avoided by people concerned with their financial interest (no pun intended): no discussion of what bond-funds are, how they work, or what sorts of risks are involved; rather, just, "Here's a short list of shit you MUST own -- now, go, fly away, and return only when I post my next bit of garbage."

Should you have more than one type of bond Etf in a portfolio? I was thinking of adding a couple of the ones you suggested.

could you please make a video for the fixed term bond etf for eur and usd

Looking for top 8 or 10 growth and income etfs

I just put around 1500 in SGOV, how long should I wait till I sell it

Wow, all these > tlt and blv? Im suprised

it looks like SPFF is a dividend trap. Over the last 10 years it's lost 40% of its value.

I invest in Jeffrey Gundlach's DBND ETF and will live or die with its blend of bonds and active management. Oh and it pays interest monthly, cash or kind, your choice.

In addition, I own the BIL ETF as a cash buffer in many of my portfolios, it's the three month T-Bill ETF and it pays its interest monthly, cash or kind, your choice! I also have money market accounts in all portfolios, which pay interest monthly as well. So, for now I'm covered and never own 100% stocks, it's a loser game. And, no one and I mean no one can consistently "beat the market". 🤔

I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?

Hello! I found this video extremely helpful, I just don't find these investments on my platflorm, trading 212. May you please recommend me a platform for investing in these bonds? I am specifically interested to find where to buy a TIP bond.

I dont'undertand why anybody would buy any bond ETF

BKLN is down over 16% since inception date of 2011.

Hey man,
Thank you for your content.
Don’t really follow this trend, most high yield bonds etf’s do not offer dividends at all - -‘ how does it work exactly ?

Why no tax free bonds?

Semper Fi

That's a cool bowtie man. Tell me you bought it with your bond dividends.

Tks a lot. What is equivalent ireland-domicile etf for TLT or any 100% US govt bonds etf ? Tks

The dividend history of SPFF is a turn-off. It's been steadily decreasing for over 10 years.

I love how balanced and supported your portfolio choices Are! Were doing so much better thanks to YOU! Thank you so much.

Really liked the video, I only hold bonds in my 401k and Roth IRA. I only invest in REITS with my Roth IRA, so I don't pay taxes on that income in my retirement. Plus all the dividends are on DRIP so it will compound and generate me tax free income in retirement without ever having to touch the principal. I also have a taxable brokerage account that is my main portfolio that is all stocks with no ETF'S. I don't know if you would count it as a bond like investment but I have a high yield savings account for a emergency fund and so some of cash is earning interest and don't have to sell any stocks if I need cash because I am still young and in the building stage.

I lost over 200k with AGG since 2/21 and never recovered. So owning corporate bonds is definitely not a bed of roses.

How do you feel about T bill ETFs like SGOV?

No TLT? All of these bond funds crashed during Covid. TLT did not

How would you stack BKLN to SRLN?

Ok so I’m having a problem with the iShares 0-5 Year TIPS (STIP). How is this stock have a 30 Day Yield of -2.03 (NEGATIVE!) as of March 2023 when it’s one of the highest inflation years since the 80’s AND the TIPS have a built in “protection” feature of paying interstate increases after bought?
How is the $STIP paying a 30 Day Yield of -2.03??

Could you do a video on making a t bill ladder? Also thoughts on GTP chat?

Don't you think a better way to go is to buy a fund that holds all the bonds to a certain maturity date ? This way you don't have the interest rate pressure. The funds closes on that date and your guaranteed all your money back. Open bond funds hold too many bonds with no true maturity date.

What about TLTW? 15 percent Div! I like the idea of a bond ETF. I have JEPI, JEPQ and BSTZ. Paying my house payment with the dividends!

thanks for all these free information !

Duhhh....anything will beat the market this year....average person did worst than DJIA, which was bearish .

good video but you didn't talk about expense ration which is one important factor

Hello Joe, Great video as usual, Thanks. I just have one important question is the yield quoted on an ETF net or gross of it's expense ratio? This is important given that a lot of pensions over in Europe have a minimium 4% per year drawdown clause.

Sorry Joe, but SCHP (passive) is better for TIPS, and DBND (active) is better than any of that other crap. People who were buying bonds when the 10 year was bid up so high that it only yielded 50 basis points were just asking to get burned. A lazy person might just buy Vanguard Wellington, and let Wellington Capital Management do the work for them.

Great video!! Have you reviewed tltw?

FLBL is better than BKLN

I like math nerd shit lol. Make the math nerd shit, I'll watch.

3 months ago was a great time to invest in TLT

Not sure if an ETF like JEPI would ultimately be a better option for passive income, higher yield but taxed. Will need passive income for retirement in approximately 3-4 years from now.