RBS 253: Bonds vs. Bond Funds: Does Holding to Maturity Actually Protect You?

Are individual bonds safer than bond funds? After my last video on cash versus bonds, a lot of you pushed back with the same argument: with an individual bond or a bond ladder you can hold to maturity and get your money back, and a bond fund can't do that.In this video I put that idea to the test with real numbers. I start with the one thing we have to understand first, the difference between a bond's maturity and its duration. Duration is what tells us how much a bond or a bond fund moves when interest rates change.Then I look at how the funds actually did. Vanguard's Total Bond Market (BND) and an iShares 7-10 year Treasury ETF both got hit hard in 2022.Next we look at a single 10-year Treasury from the start of 2022, the kind you can hold to maturity, and track what really happened to it once you factor in inflation.Join the Newsletter. It's Free:https://robberger.com/newsletter/?utm...