BOND ETF

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Samy
Posts: 69
Joined: Mon Aug 13, 2007 7:05 pm
Location: Los Angeles

BOND ETF

Post by Samy »

Is there such thing as a ETF Bond?

I going to issue a large transaction with VBMFX. As I understand the price of my transaction will be determined at the end of the day after closing bell. I do not like that

I want to be able to roughly predict what my price would be at the time that I issue the order. Is there any ETF, or Index that follows the VBMFX?

thanks
mackstann
Posts: 210
Joined: Thu May 17, 2012 12:59 am
Contact:

Re: BOND ETF

Post by mackstann »

Yes, the ETF version of Vanguard Total Bond Market has the ticker BND. Vanguard's webpages for its funds have a convenient link to their ETF versions, if one exists for that fund.
It does not matter how slowly you go so long as you do not stop.
MNGardetto
Posts: 20
Joined: Sun May 20, 2012 7:32 pm

Re: BOND ETF

Post by MNGardetto »

Can you describe your concern of paying the end of day NAV? Are you only planning on holding it for a short period of time? Otherwise I wouldn't worry about it and wouldn't plan on trying to time it.

If you wanted a mutual fund, you can roughly guess what the NAV you will pay by watching BND. Do you know about premuim/discount and tracking error? Currently, BND is trading at a premium which means you are paying more than the NAV. This is a good reason to buy into the mutual fund instead unless you are careful with your buy orders.
User avatar
BigFoot48
Posts: 3115
Joined: Tue Feb 20, 2007 9:47 am
Location: Arizona

Re: BOND ETF

Post by BigFoot48 »

I own a really large holding in the Vanguard Total Bond ETF. I use the ETF because Schwab charges a high fee to buy and sell Vanguard funds. But I much prefer buying funds at end of day, avoiding the hassle of setting a buy price and a limit order, and watching the amount I'm buying possibly get accumulated over many transactions, perhaps extending upon one day.

I would recommend just buying the fund and knowing the end of day NAV will be the correct price, and years from now when you sell some to fund your around-the-world cruise it won't matter one bit what it was.
Last edited by BigFoot48 on Thu Aug 16, 2012 4:08 pm, edited 1 time in total.
Retired | Two-time in top-10 in Bogleheads S&P500 contest; 18-time loser
Topic Author
Samy
Posts: 69
Joined: Mon Aug 13, 2007 7:05 pm
Location: Los Angeles

Re: BOND ETF

Post by Samy »

Thank you all. Bnd it is.
MNGardetto
Posts: 20
Joined: Sun May 20, 2012 7:32 pm

Re: BOND ETF

Post by MNGardetto »

BigFoot48 wrote:I own a really large holding in the Vanguard Total Bond ETF. I use the ETF because Schwab charges a high fee to buy and sell Vanguard funds. But I much prefer buying funds at end of day, avoiding the hassle of setting a buy price and a limit order, and watching the amount I'm buying possibly get accumulated over many transactions, perhaps extending upon one day.

I would recommend just buying the fund and knowing the end of day NAV will be the correct price, and years from now when you sell some to fund your around-the-world cruise it won't matter one bit what it was.

Any reason you just don't trade SCHZ if you are with Schwab?
igghy
Posts: 61
Joined: Sun May 20, 2012 7:13 am

Re: BOND ETF

Post by igghy »

mackstann wrote:Yes, the ETF version of Vanguard Total Bond Market has the ticker BND. Vanguard's webpages for its funds have a convenient link to their ETF versions, if one exists for that fund.
Where's that convenient link located? I went to their fund listings and didn't see. Thank you.
User avatar
BigFoot48
Posts: 3115
Joined: Tue Feb 20, 2007 9:47 am
Location: Arizona

Re: BOND ETF

Post by BigFoot48 »

MNGardetto wrote:Any reason you just don't trade SCHZ if you are with Schwab?
I have owned the Schwab S&P500 as my core equity holding for many years, but after the Schwab HighYield Plus fiasco five years ago cost me some money, I lost any interest in using other Schwab funds.

The bond fund SCHZ looks like it matches Vanguard Total Bond almost exactly in performance, and would probably be just fine, but my total bond, and other funds rebalancing is so infrequent that now that I'm on ETFs the trading costs is just no longer an issue. I know and trust Vanguard funds - Schwab funds, not so much.
Retired | Two-time in top-10 in Bogleheads S&P500 contest; 18-time loser
User avatar
Rager1
Posts: 999
Joined: Fri Jun 01, 2007 12:03 pm

Re: BOND ETF

Post by Rager1 »

igghy wrote:
mackstann wrote:Yes, the ETF version of Vanguard Total Bond Market has the ticker BND. Vanguard's webpages for its funds have a convenient link to their ETF versions, if one exists for that fund.
Where's that convenient link located? I went to their fund listings and didn't see. Thank you.
Here: https://personal.vanguard.com/us/funds/ ... IntExt=INT

Ed
igghy
Posts: 61
Joined: Sun May 20, 2012 7:13 am

Re: BOND ETF

Post by igghy »

Thank you. Found it, the second line in small prints.
Post Reply