Quick Read
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SCHR and IEF both hold U.S. Treasuries in overlapping maturities, but IEF's longer duration dropped 3.39% last month versus SCHR's 2.36% when rates climbed.
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Bonds let you raise cash during a downturn, solving the sequence-of-returns risk that wrecks early retirement.
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SPAB covers the entire investment-grade bond market including corporates, but those same bonds can fall alongside stocks during a recession.
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You built a $1.2 million portfolio without bonds, and the results back you up. Over long periods, an all-stock portfolio has historically outperformed. That track record deserves respect. It also raises a question about what a portfolio this size needs next.
Three funds offer ways to answer it: Schwab Intermediate-Term U.S. Treasury ETF( NYSEARCA:SCHR ), SPDR Portfolio Aggregate Bond ETF( NYSEARCA:SPAB ), and iShares 7-10 Year Treasury Bond ETF( NASDAQ:IEF ). Your stocks stay put and keep driving growth. These funds sit alongside the equities you already own.
Why Your Portfolio's Job Changes as It Grows
As your balance climbs and horizon shortens, a position sized to survive a decline becomes worth more than one sized to maximize the next good year. Ballast measures what your portfolio does in a bad period. Practically, it gives you something to sell that has not just fallen. When stocks drop and you need cash, bonds let you raise it without selling shares at the worst moment.
That said, bonds still carry risk. Bond funds lose value as interest rates climb, and while they frequently offset stock declines, they can sometimes fall alongside them as well. Over the past month, the 10-year Treasury yield climbed from 4.83% on September 9 to 5.29% on September 30, and all three funds below slipped.
Additionally, these funds overlap. SCHR and IEF both hold U.S. Treasury debt in overlapping maturity ranges, while SPAB adds corporate and securitized debt. They serve as alternative ways to do the same job.
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SCHR Delivers Straightforward Treasury Ballast
SCHR holds intermediate-maturity U.S. Treasuries, roughly in the 3-10 year range. Its latest holdings report, dated June 30, 2026, shows a portfolio mostly in Treasury securities plus a small government money market position, with the largest single bond at about 2.14% of net assets. The fund held roughly $13.38 billion in net assets.
SCHR distributed $0.9652 per share over the trailing 12 months, against a recent price of $23.69. It is down 2% over one year and up 8.97% over 10 years. It offers pure government credit with nothing else mixed in.
SPAB Opens Up the Broad Bond Market
SPAB covers the wider U.S. investment-grade bond market, benchmarked to the Bloomberg U.S. Aggregate Bond Index. Beyond Treasuries, it owns corporate and securitized debt, which gives you a wider opportunity set. The tradeoff is credit exposure, since corporate bonds can decline during a recession, precisely when you want ballast holding steady.
SPAB distributed $1.038895 per share over the trailing 12 months against a recent price of $24.36. It is down 1.86% over one year and up 11.42% over 10 years. It offers one fund that mirrors the whole bond market.
IEF Reaches Further Out on the Treasury Curve
IEF holds Treasuries tracking the ICE U.S. Treasury 7-10 Year Bond Index, a longer slice of the curve than SCHR covers. It charges a 0.15% expense ratio, per its prospectus.
Longer maturities mean more movement when rates change. During the past month's rate climb, IEF fell 3.39%, compared with 2.36% for SCHR and 2.6% for SPAB. Over five years, it is down 10.28%. IEF distributed $3.701662 per share over the trailing 12 months against a price of $89.27. It offers stronger potential cushioning in a rate-cutting slowdown, with bigger swings along the way.
Trade-Offs Every All-Stock Investor Should Weigh
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Rate risk is real.All three funds fell over the past month, and IEF's longer maturities amplify both losses and gains.
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Offsets are likely, never guaranteed.Bonds often buffer stock declines, but some periods hit both at once.
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Account location matters.Holding bonds inside a tax-sheltered account avoids the tax treatment bond interest receives in a taxable account.
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Size depends on you.The right allocation hinges on your timeline, spending needs, and tolerance for losses.
Where Ballast Fits in a Growth Portfolio
Your equities earned the balance and will keep driving growth. A bond fund gives growth room to recover after a bad year, because you can draw on something other than beaten-down stocks (that sequence-of-returns problem is exactly what our free guide on defending the first years of withdrawals is built around). SCHR offers the simplest Treasury version, SPAB trades some credit risk for diversity, and IEF adds rate sensitivity. The 10-year minus 2-year spread stood at 0.37% as of September 29, and its direction will shape how each fund performs next.
Learn 7 Ways To Generate Income With A $1,000,000+ Portfolio
If you've saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life.
Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor)
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