Allocation of bond funds in taxable account
Allocation of bond funds in taxable account
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?
Re: Allocation of bond funds in taxable account
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
Re: Allocation of bond funds in taxable account
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.
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Re: Allocation of bond funds in taxable account
100% VCSH, assuming Treasuries or total bond market are held elsewhere in the portfolio.
Re: Allocation of bond funds in taxable account
No treasuries or total bond market elsewhere. VCSH and BSV are the only tow options.aristotelian wrote:100% VCSH, assuming Treasuries or total bond market are held elsewhere in the portfolio.
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Re: Allocation of bond funds in taxable account
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 wrote:No treasuries or total bond market elsewhere. VCSH and BSV are the only tow options.aristotelian wrote:100% VCSH, assuming Treasuries or total bond market are held elsewhere in the portfolio.
Re: Allocation of bond funds in taxable account
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 wrote: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 wrote:No treasuries or total bond market elsewhere. VCSH and BSV are the only tow options.aristotelian wrote:100% VCSH, assuming Treasuries or total bond market are held elsewhere in the portfolio.
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Re: Allocation of bond funds in taxable account
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.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.