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Bonds in a rising rates environment

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  • Bonds in a rising rates environment

    So question at a cross-section of asset allocation & bond investment...

    With the market run-up, both to rebalance and give myself a chance to "pounce" on a crash I was thinking of pushing a portion of my future allocations and March dividends into bonds.  Most of my funds are with Vanguard and a small portion with Schwab.  Overall I agree that "bonds go in taxable" and I do have a portion of my kitty in AMT-exempt state-specific Munis, but what about "generic" bond funds, especially in a rising rates environment?  I want something with a very low ER, slightly higher yield than Munis, and less exposed to interest rate risk than intermediate grade govn't bonds even if the default risk is ever so slightly higher.  So with that in mind and thinking specifically about Vanguard ETFs, what does everyone think about BND vs. VCHC  ??  I am 37, looking to retire in late 50s/early 60s, bonds are currently 7.5% of my retirement portfolio and slightly higher (maybe 12%?) within taxable.