A 1% rise in bond yields could cause a 5.7% drop in Vanguard's BND ETF price despite its 4.7% yield.
Vanguard's Total Bond Market ETF (BND), popular as a safe portfolio component, faces significant rate risk despite its 4.7% yield. A 1% parallel increase in bond yields could lead to an immediate 5.7% drop in BND's net asset value, offsetting its inc...
