Bonds vs. Bond Funds: How Higher Rates Are Changing the Calculation

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bonds-vs.-bond-funds:-how-higher-rates-are-changing-the-calculation

The new era of higher interest rates has reignited a long-smoldering Wall Street debate: Is it better for ordinary investors to buy individual bonds outright? Or shares of bond mutual funds?

During the yearslong period of near-zero interest rates, the answer seemed simple: Funds had low fees and were easy to buy and sell, and share values rose alongside bond prices. If any one bond defaulted, losses were minimal. 

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