fool.com·May 19, 2026
Investors buy bonds for steady income and portfolio diversification, but they can still face risks, including price declines. Selecting the right bond-focused ETF, like the T. Rowe Price Ultra Short-Term Bond ETF or the iShares 20+ Year Treasury Bond ETF, can help mitigate these risks.
For an investor focusing on asset allocation and risk management, consider diversifying your bond portfolio by balancing short-term and long-term bond ETFs like the T. Rowe Price Ultra Short-Term Bond ETF (TBUX) and the iShares 20+ Year Treasury Bond ETF (TLT). This strategy can mitigate interest rate risk and provide stability across varying economic conditions, aligning with a comprehensive financial plan.