Most Investors Pick the Wrong Bond ETF. I'd Buy BND and Never Look Back.

The bond market has recently been a major focus on Wall Street, with yields on U.S. Treasury bonds reaching record highs. For instance, the 30-year Treasury bond yield hit a peak not seen since 2002 in a recent report. Higher yields can be advantageous for bond investors, as they desire strong returns on their fixed income investments.

However, when yields rise, the value of existing bonds decreases, which can be concerning for those who own them. Rather than attempting to select bonds based on specific sectors or types, such as U.S. Treasuries versus corporate bonds, or investment-grade versus junk bonds, and also considering bond durations and interest rate risk, the reporter advises a simple approach to bond investments. The preferred option is to invest in the Vanguard Total Bond Market ETF, known as BND.