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Vanguard Total Bond Market ETF remains a sell due to low returns and rising interest rate risks.

Market News
11 May 2026
Seeking Alpha
View Source
Bearish
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The Vanguard Total Bond Market ETF (BND) is advised to be sold because it offers a low expected return of 3.26%, which is below current cash yields, and carries significant downside risk if interest rates rise further. The ETF's portfolio yield is 4.4% with a 5.7-year duration, making it vulnerable to price declines amid rising rates. The analyst prefers short-duration Treasury and TIPS ETFs, which provide better risk-adjusted returns and inflation protection compared to BND. This assessment underscores ongoing challenges in bond markets amid a bear market environment.

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