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Author: muegenv6 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35340  
Subject: bond funds Date: 3/22/2001 10:55 PM
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what's a good bond fund to pick with low custodial fee?,what about TotBd?,thanks
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Author: belanger Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1410 of 35340
Subject: Re: bond funds Date: 3/23/2001 7:55 AM
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To the best of my knowledge Vanguard has the lowest fees.

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Author: bheindl One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1411 of 35340
Subject: Re: bond funds Date: 3/23/2001 10:42 AM
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I agree. I've been looking into a Bond Fund myself. The best I've found is Vanguard's Total Bond Market Index. No load, very low expenses. Also easy for those of us confused by short-term, long-term, corporate, etc., etc.

Hope this helps.

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Author: mdorsey One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1427 of 35340
Subject: Re: bond funds Date: 3/26/2001 4:06 PM
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March 22, 2001


Vanguard 500 Index (VFINX) YTD total return –13.45% . 12 month total return -24.47%.

Vanguard GNMA (VFIIX) YTD total return 2.81%. 12 month total return 12.30%.

Vanguard Total Bond Mkt Index Inst (VBTIX) YTD total return 3.52%. 12 month total return 12.95%.

Is it too late to take advantage of these great returns? Maybe. But, my guess is bonds will keep outperforming for the next 3 months. Even if they don't, the “sleep factor” can be worth the difference.


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Author: PhearlessPhool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1440 of 35340
Subject: Re: bond funds Date: 3/31/2001 9:45 AM
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Good Morning Muegenv,

A broad spectrum fund such as Vanguard's Total Bond Index fund is a good choice. But there is a caveat. Your "horizon" should be more than five years out. If not, you are better advised to go to a short term bond fund with a low expense ratio. Interest rates probably are close to a low null. If so, you are paying a bit of a "premium" for anything longer than short term.

There is one alternative that may be worth your trouble. That is a Treasury Direct account with the Bureau of Public Debt. This also is very low cost but you can only buy new Treasury issues.

Finally, with the flight to quality that is currently going on, the risk premium for corporate bonds over treasury issues does make corporates more attractive at the moment. Also FWIW, the after tax yield on tax exempt issues generally makes them very attractive also. IF you take this route, take care not to get snagged by the Alternate Minimum Tax.

Good Luck!

pp

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Author: aptpupil Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1464 of 35340
Subject: Re: bond funds Date: 4/5/2001 1:34 PM
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Hi Phearless Phool,

Finally, with the flight to quality that is currently going on, the risk premium for corporate bonds over treasury issues does make corporates more attractive at the moment. Also FWIW, the after tax yield on tax exempt issues generally makes them very attractive also. IF you take this route, take care not to get snagged by the Alternate Minimum Tax.

I am a newbie, earnestly trying to educate myself regarding a better vehicle for cash than Money Markets & C.D.'s.

In October of 1998, I purchased Vanguard's Calif. Intermediate Term Bond Fund, because I had read one should diversify their portfolio with bonds. Last June I decided to sell it as the return had been very poor. (I barely received my principal) I realize now that if I had kept it, it would have increased in the past 10 months. At any rate, the experience (at the time) soured me against bond funds.

I had been studying the U.S. Treasury web site this morning when I decided to check out the Fool B&FII board and came across your post and the above referenced quote. Would you please elaborate further on the purchase of corporate bonds? Also, I am subject to the AMT.

What is your opinion regarding purchasing 26-week T-bills?

Thanks.

aptpupil




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Author: MSMcMac Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2254 of 35340
Subject: Re: bond funds Date: 10/20/2001 2:04 AM
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Vanguard Total Bond or Vanguard GNMA Bond Fund

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