Vanguard Total Bond Market ETF is a well-known ETF offering exposure to the entire investment grade bond market in a single ticker, with holdings in T-Bills, corporates, MBS, and agency bonds. It seeks to track the performance of a broad, market-weighted bond index, the Bloomberg Barclays U.S. Aggregate Float-Adjusted Index, making it an excellent choice for investors who currently have little to no bond exposure and are looking to broadly increase their holdings in the segment across a variety of sectors. BND is a great core bond holding, offering a conservatice portfolio with minimal credit risk. It also provides a broad exposure to the taxable investment-grade U.S. dollar-denominated bond market, excluding inflation-protected and tax-exempt bonds.
BND provides relatively high potential for investment income; share value tends to rise and fall modestly.
Generally appropriate for diversifying the risks of stocks in a portfolio, it may be more appropriate for medium- or long-term goals where you’re looking for a reliable income stream.
Bloomberg Barclays U.S. Aggregate Float Adjusted Index measures the performance of a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States.
Bonds include government, corporate, and international dollar-denominated Bonds, as well as mortgage-backed and asset-backed securities.