Vanguard Federal Money Market Fund rate goes up almost daily a basis point now. I know, not the greatest rate, but I am placing emergency money in it now. Been laddering some CDs and treasuries in my IRA accounts too as I can not buy the current higher rate I bonds in them.
I don’t understand corporate bonds much. The threat of default makes them less desirable than government treasuries or bank CDs. Do companies like Coca Cola sell bonds that pay better rates than treasuries? I wouldn’t think Coca Cola would go belly up.
iShares® iBonds® Dec 2026 Term Corporate ETF
IBDR
https://www.ishares.com/us/products/285027/ishares-ibonds-dec-2026-term-corporate-etf-fund)
Incept. Date 13, 2016
Gross Expense Ratio (%)0.10
Net Expense Ratio (%)0.10
Net Assets (USD)1,013M
Duration (yrs)3.56
Avg. Yield (%)4.38
If you hold to maturity it’s likely you will experience a 4% yield. iShares has different maturity dates. Diversified corporate bond portfolio, no big bets placed on any one company.
IBDR vs. BND
Portfolio visualizer shows with reinvested dividends, a $1000 purchase in January 2017 has IBDR at $1164 and BND at $1067 as of June 2022.
Similar results comparing to VCSH, BLV, and VCLT.