The author explains why they sold individual bonds and moved everything into the Vanguard Total Bond Market ETF (BND), arguing that holding a single bond can limit income and reduce diversification. BND holds 11,421 bonds, with more than 62% in Treasuries and other U.S. government debt, which keeps credit risk relatively low. The article also warns about rate risk: the Federal Reserve recently raised rates and is expected to do so once more before the end of 2026, and a 1% rise could cause deep double-digit losses on 30-year Treasuries. Individual bonds also require substantial capital, since corporate bonds are issued in $1,000 increments and municipal bonds in $5,000, whereas a BND share costs barely more than $70 with a 0.03% annual fee.
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