Updated: May 10, 2021
We’re reimaging how bonds work; so they can work for you.
Achieve your expectations regarding risk, return, and social impact.
Plan for your future cash flow needs.
Bonds make fantastic building blocks.
If we, as individual investors, can own a fractional piece of Amazon (currently $3,478 per share) or any other stock, why can’t we own a fractional piece of a bond? Afterall, bonds and stocks are both securities and as near as we can tell, the math (simple division) still works. Once implemented, you have solved an access problem that has necessitated some form of packaging like a mutual fund or unit investment trust.
Once upon a time funds gave individual investors access to a commoditized pool of bonds. Now, this same convenience is a shortcoming that simply corals people into commoditized pools of ideals. Only you know what you mean when it comes to social principles and risk tolerance.
Bond funds are just packaging. Packaging is a waste. Packaging comes at an enormous cost. At one time, bond funds served a purpose; now, funds seem like they're just disguising a pay scheme for bond fund managers. Ditch the package. Go direct.