Vanguard Forecasts 3.8% to 4.8% Annual Returns for U.S. Bonds Over Next Decade
Investors can diversify against the downside risks of stocks by allocating to high-quality U.S. fixed income, which Vanguard research expects to deliver annual returns of 3.8% to 4.8% over the next 10 years. This outlook is based on the premise that interest rates remain elevated while staying above the rate of inflation. Vanguard's 2026 economic and market outlook report states that high-quality U.S. fixed income has the best risk-return profile of any type of public investment for the next five to 10 years. These assets are accessible via the Vanguard Total Bond Market ETF (BND), which tracks thousands of investment-grade U.S. bonds. The fund charges an expense ratio of 0.03%.
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