April 06, 2021
Myth #1: Bonds are a bad idea—abandon the 60/40 portfolio.
Myth #2: Go to cash—avoid duration risk.
Myth #3: When interest rates are rising, don't just stand there—do something!
The elephant in the room—inflation
Where active can shine
2 Bosse, Paul, 2019. Commodities and Short-Term TIPS: How Each Combats Unexpected Inflation. Valley Forge, Pa.: The Vanguard Group.
3 For the 10-year period ended December 31, 2020, 38 of 44 actively managed Vanguard bond funds outperformed their peer-group averages. Results will vary for other time periods. Only funds with a minimum 10-year history were included in the comparison. (Source: Lipper, a Thomson Reuters Company.) Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at vanguard.com/performance.