Hi Helfordpirate.
Thank you very much for the explanation.
I'm at the point of my knowledge about bonds at which I can understand what you explained and it now makes sense to me. Without your explanation I had lots of doubts.
Regarding your last advice, I think it's like me owning my car. It serves me very good although I don't understand all the mechanics. In this case, this is the bond ETF I found which has the qualities most similar to what boggleheads suggest a bond fund shoud be: comprised of the most secure government bonds of my region: europe.
With time and with your and other boggleheads help I'm getting more and more knowledgeable about this very important theme. Thanks!
Quez
Search found 20 matches
- Thu Sep 12, 2013 9:48 am
- Forum: Investing - Theory, News & General
- Topic: European bond ETF 1 year return negative, Why?
- Replies: 3
- Views: 563
- Thu Sep 12, 2013 8:59 am
- Forum: Investing - Theory, News & General
- Topic: European bond ETF 1 year return negative, Why?
- Replies: 3
- Views: 563
European bond ETF 1 year return negative, Why?
The fund is db x-trackers IBOXX® € SOVEREIGNS EUROZONE AAA TR INDEX ETF (XBAT) and it is now having negative one year returns of 2-3%.
It is constituted of more than 95% Germany, Netherlands and Austria sovereign bonds.
Here are some information about this ETF that I still can't understand (bond mechanisms still confuse me a lot):
The coupon is 3.02%.
Yeld to maturity: 2.06%
Duration: 6.60
I use this ETF for my portfolio bond portion. Can you please explain me the possible (or real) reasons for this past negative yearly behavior?
It is constituted of more than 95% Germany, Netherlands and Austria sovereign bonds.
Here are some information about this ETF that I still can't understand (bond mechanisms still confuse me a lot):
The coupon is 3.02%.
Yeld to maturity: 2.06%
Duration: 6.60
I use this ETF for my portfolio bond portion. Can you please explain me the possible (or real) reasons for this past negative yearly behavior?
- Thu Aug 22, 2013 5:36 am
- Forum: Investing - Theory, News & General
- Topic: International allocation for an Euro currency country?
- Replies: 15
- Views: 1635
Re: International allocation for an Euro currency country?
Hanseat; Thank you for your insight. You're right about the inadequacy of the fund I proposed but let's change it for another one, this time using only European Monetary union constitutents: iShares MSCI EMU UCITS ETF. I'm just questioning all the buzz of a three-fund portfolio instead of a two-fund portfolio. If a large portion of US citizens boggleheads just don't feel at ease having the almost 50% portion a global fund would give them, why should we, the remaining world ex-US boggleheads feel right having just a small portion of our own currency? Other question would be: What domestic/international split would be good to a UK citizen? And a EMU citizen? And a Canadian citizen? All this scenarios would have to be very different from one a...
- Wed Aug 21, 2013 10:35 am
- Forum: Investing - Theory, News & General
- Topic: International allocation for an Euro currency country?
- Replies: 15
- Views: 1635
International allocation for an Euro currency country?
Hi; I'm debating with this question and I can't find an answer for it. If a US citizen follows a global allocation then he will get, according to Vanguard Total World Stock ETF, 49,2% allocated to their own country and currency. According to most international allocation theories that number should only go up even to 100% in extreme opinions (even Jack Boggle wouldn't bother with this 0% international allocation). But what shall a euro currency country citizen do? According to Vanguard Total World Stock ETF, Europe allocation is 23%. As an european citizen, in an euro currency country what should I do? Should I go with a global fund like Vanguard total world and only get 23% allocated on my own currency (and economic environment) or should ...
- Wed Jan 09, 2013 7:02 am
- Forum: Non-US Investing
- Topic: European portfolio to "stay the course". Am I off-track?
- Replies: 0
- Views: 402
European portfolio to "stay the course". Am I off-track?
What do you think of this 5 fund portfolio for an European citizen (portuguese)?
I'm 38 with no loans.
Equities:
70% SPDR MSCI ACWI IMI (TER=0,55)
BONDS:
10% db-x trackers GLOBAL SOVEREIGN INDEX ETF eur edged (TER=0,25)
10% db x-trackers IBOXX® € SOVEREIGNS EUROZONE AAA (TER=0,15)
GOLD:
5% ZKB GOLD ETF EURO (TER=0,4)
REIT
5% HSBC FTSE EPRA/NAREIT DEVELOPED (TER=0,4)
Thanks in advance for your comments.
Quez
I'm 38 with no loans.
Equities:
70% SPDR MSCI ACWI IMI (TER=0,55)
BONDS:
10% db-x trackers GLOBAL SOVEREIGN INDEX ETF eur edged (TER=0,25)
10% db x-trackers IBOXX® € SOVEREIGNS EUROZONE AAA (TER=0,15)
GOLD:
5% ZKB GOLD ETF EURO (TER=0,4)
REIT
5% HSBC FTSE EPRA/NAREIT DEVELOPED (TER=0,4)
Thanks in advance for your comments.
Quez
- Wed Dec 19, 2012 4:40 am
- Forum: Investing - Theory, News & General
- Topic: Opportunistic Rebalancing: A New Paradigm
- Replies: 69
- Views: 27121
Re: Opportunistic Rebalancing: A New Paradigm
Hi;
Let's suppose I own a 2 ETF portfolio (80% global equity ETF + 20% bond ETF).
If I was expecting for the ETF drift to change 20% I would have to wait for an average of 2-3 years for rebalancing, isn't that right? In the meantime what would I do with the money I would be injecting to the portfolio periodically? Wouldn't I be losing money not investing it?
Quez
Let's suppose I own a 2 ETF portfolio (80% global equity ETF + 20% bond ETF).
If I was expecting for the ETF drift to change 20% I would have to wait for an average of 2-3 years for rebalancing, isn't that right? In the meantime what would I do with the money I would be injecting to the portfolio periodically? Wouldn't I be losing money not investing it?
Quez
- Fri Dec 14, 2012 4:56 am
- Forum: Non-US Investing
- Topic: Trying to build a definite portfolio for me as an European
- Replies: 3
- Views: 772
Re: Trying to build a definite portfolio for me as an Europe
Thanks!
Stluitz, you're right, I can't find an european total Pacific ETF. the joke doesn't translate litterally to portuguese but I've seen it so much in english that I get it naturally.
Tedswippet, the problem with the fund is that it doesn't exist in EUR. I would have to invest either in USD or GBP. SPDR has got the SPDR MSCI ACWI IMI ETF. It's in EUR but a bit expensive: TER= 0,55%. What do you think of these ETF?
Also, by having all these ETFs I was trying to get some advantages of tilting to small caps where I could but I'm really not sure if it would be better to stick with just one all-world ETF...
Quez
Stluitz, you're right, I can't find an european total Pacific ETF. the joke doesn't translate litterally to portuguese but I've seen it so much in english that I get it naturally.
Tedswippet, the problem with the fund is that it doesn't exist in EUR. I would have to invest either in USD or GBP. SPDR has got the SPDR MSCI ACWI IMI ETF. It's in EUR but a bit expensive: TER= 0,55%. What do you think of these ETF?
Also, by having all these ETFs I was trying to get some advantages of tilting to small caps where I could but I'm really not sure if it would be better to stick with just one all-world ETF...
Quez
- Thu Dec 13, 2012 6:31 am
- Forum: Non-US Investing
- Topic: Trying to build a definite portfolio for me as an European
- Replies: 3
- Views: 772
Trying to build a definite portfolio for me as an European
Hi; It took some time but I reshaped my portfolio. Please, tell me if I'm still making mistakes and everything you think I could do to improve it. Here it is: Desired Asset allocation: 70% stocks / 20% bonds /5% gold / 5% REIT 20% BONDS 10% db-x trackers GLOBAL SOVEREIGN INDEX ETF eur edged (só desenvolvidos) (DBZB) - EUR 10% db x-trackers IBOXX® € SOVEREIGNS EUROZONE AAA TR INDEX ETF (XBAT) - EUR STOCKS: 10% Emerging markets: 5% DB X_Trackers MSCI EMERGING MARKETS TRN INDEX ETF - EUR 5% iShares MSCI Emerging Markets SmallCap (IEMS) - USD 32% USA: 17% iShares S&P SmallCap 600 (IDP6) - USD 15% Vanguard S&P 500 ETF (VUSD) - USD 3% CANADA: DB-X Trackers MSCI CANADA TRN INDEX ETF (D5BH) - EUR 15% EUROPE: 5% iShares MSCI Europe (IMEA) - ...
- Tue Nov 27, 2012 8:33 am
- Forum: Non-US Investing
- Topic: My totally european portfolio
- Replies: 7
- Views: 1772
Re: My totally european portfolio
Anyone?
Thanks;
Quez
Thanks;
Quez
- Tue Nov 20, 2012 8:49 am
- Forum: Non-US Investing
- Topic: My totally european portfolio
- Replies: 7
- Views: 1772
Re: My totally european portfolio
Hi; It took some time but I reshaped my portfolio. Please, tell me if I'm still making mistakes and everything you think I could do to improve it. Here it is: Desired Asset allocation: 70% stocks / 20% bonds /5% gold / 5% REIT 20% BONDS 10% db-x trackers GLOBAL SOVEREIGN INDEX ETF eur edged (só desenvolvidos) (DBZB) - EUR 10% db x-trackers IBOXX® € SOVEREIGNS EUROZONE AAA TR INDEX ETF (XBAT) - EUR STOCKS: 10% Emerging markets: 5% DB X_Trackers MSCI EMERGING MARKETS TRN INDEX ETF - EUR 5% iShares MSCI Emerging Markets SmallCap (IEMS) - USD 32% USA: 17% iShares S&P SmallCap 600 (IDP6) - USD 15% Vanguard S&P 500 ETF (VUSD) - USD 3% CANADA: DB-X Trackers MSCI CANADA TRN INDEX ETF (D5BH) - EUR 15% EUROPE: 5% iShares MSCI Europe (IMEA) - ...
- Mon Sep 17, 2012 8:55 am
- Forum: Non-US Investing
- Topic: My totally european portfolio
- Replies: 7
- Views: 1772
Re: My totally european portfolio
The bond question is, for a European, a very difficult one, indeed. And I'm still very confused.
Examining the ishares site, I can get bonds of the following safe countries, for a TER=0,2%:
Germany, Netherlands, Austria, Finland, Belgium (is it safe?)
OTOH, I have the db-x trackers GLOBAL SOVEREIGN INDEX ETF eur edged (only developed contries) for a TER of 0,25%.
So, what do you think would be better?
Examining the ishares site, I can get bonds of the following safe countries, for a TER=0,2%:
Germany, Netherlands, Austria, Finland, Belgium (is it safe?)
OTOH, I have the db-x trackers GLOBAL SOVEREIGN INDEX ETF eur edged (only developed contries) for a TER of 0,25%.
So, what do you think would be better?
- Mon Sep 17, 2012 8:31 am
- Forum: Non-US Investing
- Topic: My totally european portfolio
- Replies: 7
- Views: 1772
Re: My totally european portfolio
Thank you so much, Valuethinker!
Quez
Quez
- Mon Sep 17, 2012 4:56 am
- Forum: Non-US Investing
- Topic: My totally european portfolio
- Replies: 7
- Views: 1772
Re: My totally european portfolio
Hi Valuethinker;
Thank you very much for your insight!
So, let me see if I understand:
I should reduce EM from 23% to a maximum of 10-20%;
reduce from 22% in REITS, gold and commodities to 10%;
Eliminate EM bonds and global inflation bonds.
Could you give me further insights why you question EM bonds and commodities ETF?
Also, how could I redistribute the remaining percentage?
Thanks;
Quez
Thank you very much for your insight!
So, let me see if I understand:
I should reduce EM from 23% to a maximum of 10-20%;
reduce from 22% in REITS, gold and commodities to 10%;
Eliminate EM bonds and global inflation bonds.
Could you give me further insights why you question EM bonds and commodities ETF?
Also, how could I redistribute the remaining percentage?
Thanks;
Quez
- Fri Sep 14, 2012 4:09 am
- Forum: Non-US Investing
- Topic: My totally european portfolio
- Replies: 7
- Views: 1772
My totally european portfolio
I'm in the process of constituting my portfolio and, as an european, I'm trying to use only european ETFs.If possible, I choose accumulation ETF's but if I don't find any of those, I'll go with ETF domiciled in non withdrawing taxable locations like Ireland. Also I will always go with EUR or EUR hedged ETF. If not possible, I'll buy in USD. As I'm new to this, I can be making some mistakes I'm not aware and those can be a wrong ETF choosing, bad TER, bad diversification, etc. So, please, if anyone could give me some information, I would really appreciate. So, here it goes: Emergency funds: I don't have those but I work and get a monthly salary. Debt: No Tax Filing Status: Single Tax Rate: I'm portuguese State of Residence: Portugal Age: 38 ...
- Thu Sep 13, 2012 5:08 am
- Forum: Personal Investments
- Topic: European ETF difficult to analyse
- Replies: 2
- Views: 527
European ETF difficult to analyse
Hi; I'm in the process of constituting my portfolio and, as an European citizen, I want to choose european traded ETFs. The question is, when I try to analyse many of the ETF, I get the impression they are hardly transactioned. For instance, let's take VUSD, Vanguard S&P 500 ETF at London stock exchange. Although google finance has a real time protocol display with the LSE, this ETF appears without change since yesterday. And this happens in any site I reach: http://www.google.com/finance?q=LON%3AVUSD&ei=4KpRUOj9LMb1wAO1Tg . So is it really safe to opt for this European ETF instead of their american cousins (ex: VOO)? Where can I find reliable information about this ETF, like the diary amount transacted, the last trades and volumes?...
- Fri Aug 31, 2012 5:15 am
- Forum: Personal Investments
- Topic: Percentages of funds allocations
- Replies: 2
- Views: 483
Percentages of funds allocations
Hello.
How can one knows the allocations of the global funds or ETFs?
For instance, I just can't find anywhere the Vanguard® FTSE All-World ETF percentage of emerging markets allocation.
Thanks!
How can one knows the allocations of the global funds or ETFs?
For instance, I just can't find anywhere the Vanguard® FTSE All-World ETF percentage of emerging markets allocation.
Thanks!
- Thu Aug 30, 2012 7:10 am
- Forum: Personal Finance (Not Investing)
- Topic: Vanguard in the UK
- Replies: 4
- Views: 820
Re: Vanguard in the UK
From the factsheets of this new Vanguard ETF's I couldn't see any mention for whether they track the net value underlying index or the gross value index. Can anyone clarify this?
Thanks?
Thanks?
- Wed Aug 29, 2012 6:06 am
- Forum: Investing - Theory, News & General
- Topic: The Three-Fund Portfolio
- Replies: 3895
- Views: 2424456
Re: The Three Fund Portfolio
LadyGeek wrote:With additional collaboration, there are now 6 ways to do this without Vanguard mutual funds: Three-fund portfolio
Please review the table in Other than Vanguard, Boglehead-style as well as the linked articles.
Blackrock Ishares and Charles Schwab are in a new table under "Three-fund Portfolios using ETFs."
555- your post is referenced in TIAA-CREF, thanks.
This is a very useful information. As an European I ask you if anyone can help me replicate the three fund portfolio only using EUR based ETF and cappitalising instead of distributing. For me, it's being very hard to settle down this task.
Thanks!
- Tue Aug 28, 2012 6:33 am
- Forum: Spain
- Topic: European or US Bonds for a spanish investor?
- Replies: 18
- Views: 11013
Re: European or US Bonds for a spanish investor?
Wenomeno, you can try Interactivebrokers.
I'm portuguese and I have an IB account.
I'm portuguese and I have an IB account.
- Tue Aug 28, 2012 6:04 am
- Forum: Non-US Investing
- Topic: Investing options for European Union citizens
- Replies: 20
- Views: 2714
Re: Investing options for European Union citizens
@ValueThinker In regards to invest in ETF that trade in a different currency than yours, what do you think about the constant injecting and withdrawal in a different currency? One will be always exposed to the fluctuations of the currency, right? So, that won't affect the investor only if we believe that the theory of reversion to the mean is going to be valid throughout our lifetime. But what if, for instance, one lives in the eurozone but invests only in USD based ETF, and the EURUSD happens to constantly increase / decrease over a 20 year period? Won't that affect our portfolio? But if we only work with ETFs traded in EUR, at least we won't have to worry with that. I understand that the portfolio will vary with the varying currencies com...