How Much is Too Much Of a Single Bond Fund?

Q: How much is too much to invest in a bond index fund?

A: Both Vanguard bond funds currently recommended in Upgrading are quite highly diversified, as they are designed to approximate the returns of the entire short- and intermediate-term bond markets.

Because you are basically buying shares of "the whole bond market," you can own significant amounts without worrying about a lack of diversification.

• SMI's Bond Market page

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