Vanguard Bond ETFs: Why Going Short Could Mean Less Risk and More Reward

In the search for income, investors sometimes don't pay enough attention to risk. That is a problem with both stocks and bonds. The interesting thing is that risk can often be very rewarding on the equity side of the equation, but with bonds, the reward is often less material than you'd expect. Here's a look at a collection of Vanguard bond ETFs, from the Vanguard Short Term Treasury ETF (NASDAQ: VGSH) all the way to the Vanguard Extended Duration Treasury ETF (NYSEMKT: EDV).A bond is, effectively, a loan made between the buyer of the bond to the seller of the bond. In exchange for cash, the seller of the bond agrees to pay the loan back in full and pay interest while the bond is outstanding. Most bonds require a lump-sum payment at maturity; in contrast, mortgages amortize, with regular payments covering both principal and interest over the loan's life.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool