Could This Vanguard Bond ETF Help You Beat Inflation?

2026-02-06 07:41:00 ET

If you want your investments to grow vigorously over the long haul, buying stocks is usually a better choice than buying bonds. But don't take my word for it -- there are centuries of data to back that premise up.

The Deutsche Bank Research Institute's Long-Term Asset Return Study shows that during the past 200 years, U.S. stocks have delivered average annual inflation-adjusted returns of 6.7%, while 10-year U.S. Treasury bonds have returned 2.4% annually. And over medium-term periods, stocks also reliably beat bonds: During the past century in the U.S. market, bonds have never outperformed stocks over a 25-year time frame.

But for most investors, bonds are still worth having in your portfolio. And if you want your assets to hold their value against inflation over the next few years, putting some of your funds into the Vanguard Total Bond Market ETF (NASDAQ: BND) might be a good idea.

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