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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 169  
Subject: Re: "Done" Date: 8/1/1999 3:08 PM
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I prefer bank CDs or US Treasury notes purchased from Treasury Direct to bond mutual funds for the fixed income portion of my portfolio. Even the expense ratio from a low-fee provider like Vanguard (0.28%) represents a good portion of today's yields, so keeping expenses low (or non-existent) is very important.

Also, if you hold a CD or US Treasury security to maturity, you're guaranteed to get your principal back. There is no such gauranty with a bond mutual fund. It is possible to lose money with even a US Treasury bond fund. (Even if bond prices remain the same, you'll be out the fund's expense ratio.)

intercst
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