Bond Laddering and Bond Indexing: An Empirical Comparison

Bond laddering and bond indexing have been widely accepted approaches to bond investing among retail investors. However, bond laddering has virtually been ignored in both the academic literature and most of the popular investment textbooks. One thing both approaches have in common is that they are passive strategies with no attempt whatsoever to beat the market. There are many unresolved issues about the two seemingly similar approaches. First, …