What are the point of bond funds? (SWAGX)

Investor summaryBearish

Author questions the value of bond funds like SWAGX, noting underperformance vs HYSA and expecting future rate hikes.

Bear points

Underperformed compared to High Yield Savings Accounts (HYSA).
Expectation of future interest rate hikes negatively impacting bond prices.
Down about 10% since 2017, failing to provide adequate portfolio protection.

SWAGX降息与宏观

Post body

I have about 25% bonds in my portfolio. I set this allocation back when I started, so I would at least

Be somewhat protected.

Looking at performance I might as well kept it in a HYSA or something. I know if interest rates drop bonds would go up but they are already fairly low and probably will be hikes in the future. Since 2017 this fund is down about 10%. At least the rest of my portfolio is in the SP500/total market.

I’m not really asking for help just wondering why this even exists lol

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