Gov and corporate do not provide the same safety
Shown: 1 Month performance comparison between $TLT ( US LT bonds) and two LT corp Bond ETFs $VCLT $HYG.
I imagine many people switched to corporate bonds over the years because the yield on Gov Bonds was just way to low for them and instead of trying to adjust lifestyles we prefer to take more risks. So to some, it might be a surprise that these Corporate bonds can lose a lot a value quickly and do not provide the effect of saving you money in a nasty month as we have now in march 2020.
The DOW is down low 20% from an all-time high now so maybe a good time to adjust your corporate bond allocation a bit.
I imagine many people switched to corporate bonds over the years because the yield on Gov Bonds was just way to low for them and instead of trying to adjust lifestyles we prefer to take more risks. So to some, it might be a surprise that these Corporate bonds can lose a lot a value quickly and do not provide the effect of saving you money in a nasty month as we have now in march 2020.
The DOW is down low 20% from an all-time high now so maybe a good time to adjust your corporate bond allocation a bit.
Looks likt TLT has been a winner. + 8.83
DJA comes in second up almost 4%
The corp debt etf's havn't recoverd.
VCLT still down -1.44%
HYG -4%