Diversifying Bond Investments with a Barbell Strategy

This chapter explores the concept of a barbell strategy in bond investments, where investors balance short-term and long-term bonds for effective risk management and yields. It discusses the challenges of diversification in individual bond holdings and the benefits of investing in bond mutual funds or bond exchange traded funds for diversification and efficient use of smaller dollar amounts. The chapter also examines the pros and cons of using a barbell strategy with ETFs compared to a single low-cost bond fund for diversification.