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I added a note in my article to clarify this. My strategy here is short-term. You want to withdraw your capital eventually, not hold forever. Maybe you are saving for a house in a few years. If you suspect that rates are still rising when you let your ladder burn down then this can be a good approach. I agree that for long term investments (ex. a retirement account) this is probably not the right approach. Thoughts on how I can make it more clear?

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I think your key point is this: "If you suspect that rates are still rising when you let your ladder burn down then this can be a good approach." I agree with this statement.

If you disagree with the market pricing of interest rates, then yes, you should do something other than the market (i.e. what the bond fund would do). Letting the ladder burn down (as opposed to continuing to roll, as the fund would) is claiming that the rates will be higher than the market is currently pricing them.

If you agree with the market pricing of bonds, then the ladder is equivalent to the bond fund (because the bond fund is simply managing the ladder for you by proxy).

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