Thanks for your confirmation!
I submitted my request to both IB and SC to move a position across and it eventually went through just fine. I feel better having several months of expenses worth of bonds sitting in SC as my backup broker
Thanks for your confirmation!
Not saying this is happening here but if you want to check for a reason to write it off...
Thanks - that entire article is a great read. I has made me rethink one or two things regarding taxes if I ever move back to the UK.TedSwippet wrote: ↑Wed Jan 11, 2023 2:40 am Fully worked example here: Defusing capital gains: a worked example - Monevator
The allowance is scheduled to reduce drastically over the next two years.
Only on a US broker for US citizens I suspect.
Some good replies since then so I'll be short and slightly simplified... if you hold IBTA for 2 years, the underlying bonds you had at the time are guaranteed to annually yield 4.28%. The ETF itself may still be up or down because in the interim, bonds are being disposed of and replenished (to maintain the duration of 1-3yrs) and the values of those replenishment may cause yields to change, equally likely up/down. (Reinvestment risk)BogleJohn wrote: ↑Thu Oct 13, 2022 10:43 am glorat , I'm not an expert in bonds, but does this mean if I hold IBTA for 2 years (average of 1-3 years which is the duration of the ETF), I will be almost guaranteed to get an appreciation of 4.28 * 2 % (which was the yield of 2 year bonds when you wrote the post)?
You are correct on the point of theory. USD hedged to EUR will return the same as EUR bond direct. Except EUR bonds may have slightly higher expected returns because of the Italy issue.Stork wrote: ↑Fri Sep 30, 2022 3:17 pm The market has now changed so much we consider putting some of our cash into bond ETFs, and as we are in Euroland we think it should be Euro or Euro hedged.
Both Eurozone and G7 bond ETFs have a significant part of Italian bonds, we are not sure if we are totally happy with that.
Alternatively there are German government bonds or US Treasuries, Euro hedged. I believe both are pretty safe from default.
Theory says return for similar rated bonds should be the same after hedging, am I missing something?
65% of the time, the right time is right now - time in the market beats timing the market.
I've basically being doing this... Buying only IBTA in the past year to lower duration in my regular investments whereas previously I'd been all AGGGmichoco911 wrote: ↑Mon Jun 27, 2022 9:40 pm I found $IDBT as a potential alternative.
iShares US Treasury Bonds 1-3 Years, USD, Ireland Domiciled.
Anybody is using it?
You would only need to check with IBKR on distributing ETFs. On accumulating ETFs (like DLTA), your broker never sees a "dividend" - only iShares. You can check with iShare by reading their annual report.
Equally if you convert the value of both graphs to USD, you'll also find it makes no difference.
Very misleading tracker. One is measuring the USD fund performance in USD. One is measuring the EUR fund in EUR. (I'd say that is comparing apples vs oranges but actually it is literally comparing USD with EUR)
Sorry, I just have to say that the counterparty risk for ETFs that do securities lending is completely different in nature to the counterparty risk of using synthetic ETFs like Lyxor. You just can't equate them. As to whether one of those risks is bigger than the other is a matter of opinion. Suffice it to say I wouldn't go near synthetic replication as something equivalent to an ETF that actually holds the stocks.
For a HK domiciled, yes, I would say that's the best optionmaxcellent wrote: ↑Sun Apr 24, 2022 7:56 am Thanks for confirming this. Yea this is what I thought so. So would you say the best option by far is AGGG / AGGU?
So again, you want to sell AGGU because they are now cheap (aka lacklustre) and want to put them into IDTP because they are now expensive (inflation has spiked recently).jac1 wrote: ↑Tue Mar 29, 2022 10:18 am On the bond front, I may be a bit late but since inflation is going up, I'm curious about selling my AGGU bonds which has been lacklustre at best & putting part of that into my IWDA & rebalance say 10% of my portfolio in IDTP İShares (reflects gov Inflation linked bond index) Since I'm in HK & our currently is pegged to USD?
No - trying to getting into ETFs with historically better returns is how non-Bogleheads lose money as it is akin to buying high. If you start suggesting you should sell stocks with bad historical returns then you've completed the cycle of buying high and selling low.