As I’ve discussed recently, high-quality core bonds have historically been less volatile than stocks. A diversified mix of short-term bonds help to manage risks that tend to hurt bond prices. And because you can sell ETF shares any time the stock market is open, you still can easily get to your money when you’re ready to spend it.
Of course, you’ll want to talk to your financial advisor about whether ETF bond strategies may fit in with your overall investment goals. Then maybe you can go a little farther and faster with those gasoline savings.
Heather Pelant is Personal Investor Strategist for BlackRock. She is a regular contributor to The Blog.