Allocation of bond funds in taxable account

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theM6
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Allocation of bond funds in taxable account

Post by theM6 » Sun Jun 18, 2017 10:59 pm

If given only BSV (Vanguard Short Term Bond ETF) and BCSH (Vanguard Short-Term Corporate Bond ETF) as options for bonds, what percentage would you allocate of each?

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badbreath
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Re: Allocation of bond funds in taxable account

Post by badbreath » Sun Jun 18, 2017 11:18 pm

that really depends on what your asset allocation is
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx

theM6
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Re: Allocation of bond funds in taxable account

Post by theM6 » Sun Jun 18, 2017 11:44 pm

I meant, how would you allocate these too funds/ETF's in the bond portion of your portfolio if these were the only bond options you had.

aristotelian
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Re: Allocation of bond funds in taxable account

Post by aristotelian » Mon Jun 19, 2017 9:52 am

100% VCSH, assuming Treasuries or total bond market are held elsewhere in the portfolio.

theM6
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Re: Allocation of bond funds in taxable account

Post by theM6 » Mon Jun 19, 2017 2:48 pm

aristotelian wrote:100% VCSH, assuming Treasuries or total bond market are held elsewhere in the portfolio.
No treasuries or total bond market elsewhere. VCSH and BSV are the only tow options.

aristotelian
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Re: Allocation of bond funds in taxable account

Post by aristotelian » Mon Jun 19, 2017 3:20 pm

theM6 wrote:
aristotelian wrote:100% VCSH, assuming Treasuries or total bond market are held elsewhere in the portfolio.
No treasuries or total bond market elsewhere. VCSH and BSV are the only tow options.
In that case, I would want more details as to the rest of your portfolio and your goals in choosing between these two. Exclusively short term would be an odd choice for your entire bond allocation.

theM6
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Re: Allocation of bond funds in taxable account

Post by theM6 » Tue Jun 20, 2017 9:10 am

aristotelian wrote:
theM6 wrote:
aristotelian wrote:100% VCSH, assuming Treasuries or total bond market are held elsewhere in the portfolio.
No treasuries or total bond market elsewhere. VCSH and BSV are the only tow options.
In that case, I would want more details as to the rest of your portfolio and your goals in choosing between these two. Exclusively short term would be an odd choice for your entire bond allocation.
Suppose this is not a real scenario, but just a comparison between the two funds and these are the only only two funds available to you. Is BSV just enough as it also contains some corporate bonds.

aristotelian
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Re: Allocation of bond funds in taxable account

Post by aristotelian » Tue Jun 20, 2017 9:15 am

theM6 wrote: Suppose this is not a real scenario, but just a comparison between the two funds and these are the only only two funds available to you. Is BSV just enough as it also contains some corporate bonds.
Gun to my head, I would go for the higher yield of VCSH. I have it as my short term bond fund/backup emergency fund, although I am transitioning to I-Bonds.

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