u/pdeisenb

61 year old male, approaching retirement in 3.5 years. Looking to reduce risks associated with holding a mix of intermediate bond ETF including BIV, IUSB and a couple of others.

Advisor has recommended I start by purchasing a 3 year treasury bond ladder. I know treasury ladders cannot be beat for eliminating loss of principle through NAV changes due to interest rate sensitivity. That said, I am wondering if a mix of higher quality short and intermediate term ETFs might be "better enough" with some advantages...

Considering:

20% SGOV
40% VGSH
25% VGIT
15% SCHP

Nav risk would be lower than current intermediate fund holdings like BIV or IUSB. Yields decent. Simpler than maintaining a ladder (no annual updates). Liquid. Very low expenses.

Thoughts?