CLF ~ Claymore 1-5 Year Govt. Laddered Bond ETF
Right now bonds are expensive, as they are trading at premium with low yields. Bonds are also very complex instruments. So for most people buying bonds directly in a record-low interest rate environment means you are overpaying for the bond, with a reduced yield below the coupon rate. However loading up a portfolio with 80% or 90% dividend yielding stocks is not prudent either. We only have to look back at the market crash of 2008 to see how equities did – but bonds and bond funds did well. Bonds are a necessary component of any portfolio, since they create …