I've been dipping my toe into the rabbit hole that is risk parity and bonds do have a significant role in terms of volatility, economic conditions, and asset allocation. However, bond strategies are still something I would like some more perspectives on in the context of risk parity.
The bond type I'm looking at is US treasuries in the form of indexed ETFs as they are the most uncorrelated to the stock market and of high quality, which makes them a great asset.
My question is in what scenarios do bond ladders make sense and in what scenarios do bond barbells make sense if asset allocation will remain static and the goal is to be flexible in all economic environments of inflation, deflation, recession, and prosperity. I'm sure each has their pros and cons, and I think it'll be interesting to see different viewpoints on this.
Example:
When would someone want a bond barbell of TLT and SHY vs a equal weighted bond ladder of GOVI?
I actually don't see GOVI discussed that much at all, which is interesting.