With yields sitting well above where they were for much of the past decade, some investors are asking whether it is time to take on more duration in their core bond holdings. A total bond market fund offers broad, diversified exposure across Treasuries, mortgage backed securities and investment grade corporates, and typically sits in the middle of the duration spectrum. Extending that duration can lock in attractive income for longer and give portfolios more cushion if growth slows and rates fall, since longer bonds tend to gain the most when yields drop. The tradeoff is sensitivity: if inflation or deficits push rates higher again, longer maturities will take the biggest hit. That is why many advisors extend gradually, blending a core fund with some intermediate or longer exposure rather than making a single bet.  

Finsum: Duration is a dial, not a switch, and investors who turn it up in steps can capture today's yields while keeping the flexibility to adjust if the rate outlook changes.