Portfolios that use bond funds for their fixed-income allocations might need an adjustment to survive a rocky market.
Surging inflation and corresponding interest-rate increases have left many fixed-income portfolios in shambles this year.
Core bond funds, typically the bedrock of a multiasset portfolio, are down 15% to 20%.
“It’s very clear that the rate environment in the next 10 years won’t look like the last 10,” says Leland Clemons , founder of ETF issuer BondBloxx Investment Management.