https://www.wealthfront.com/blog/introducing-automated-bond-portfolio/ Expenses :0.25% Yield after expenses: 5.88 Is it too good to be true or good with less risk? Any experiences will be greatly appreciated.
Watch out on Bond ETFs, when interest rates rise their prices go down. The description from wealth front only talks about the yield not the value of the ETFs themselves. Quick search on Reddit and quite a few people in the last 6 months very unhappy with this automated strategy because of this. Also, just put your money in SPAXX or somethinf similar. What's the point of having some AI manage your portfolio when you can let the highly paid fund manager do the same thing for you and millions of other people.
Microsoft hit pretty much the nail on the head. The yield is way too low to justify the losing upside. At 5% yield, you might as well do SPY and get 1.4% dividends. Then sell covered call. 0.5%-1% yield shouldn't be too difficult with monthly call with the appropriate strike price. Easily gain over 5% yield without sacrificing the upside.
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