BND ETF's low fee masks high tax costs on its 4% yield taxed as ordinary income.

Holding bond ETF BND in taxable accounts can cost retirees $6,600 yearly in taxes on a $1M 60/40 portfolio.

Retirees with a $1 million 60/40 stock-bond portfolio holding the Vanguard Total Bond Market ETF (BND) in taxable accounts may face significant tax drag. BND's income, largely from corporate bonds, is taxed as ordinary income, reducing after-tax retu...