Changing Bond Market ETFs

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SlowMovingInvestor
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Joined: Sun Sep 11, 2016 11:27 am

Changing Bond Market ETFs

Post by SlowMovingInvestor » Thu Sep 06, 2018 8:45 pm

I have some S&P Bond fund ETFs in an IRA at TDAM. I bought them when TDAM stopped offering most iShares and Vanguard bond ETFs commission free.

I own SPAB (SPDR Lehman Aggregate Bond ETF) in an IRA at TDAM. It's a broad market bond index.

Now I have some free trades in my TDAM account, and was thinking of swapping the SPAB out for iShares AGG (bond market index) or even Vanguard's (BND) Bond ETF. This is in an IRA, so no taxes. [ I know that I might incur commissions to sell later, but I expect to get further free trades at that point]. Would AGG or BND be a reasonable replacement for SPAB ?

I also have SPIB (SPDR® Portfolio Intermediate Term Corporate Bond ETF). I was thinking of replacing with Vanguard's VCIT (Vanguard Intermediate Tm Cpte Bd ETF).

So I have
SPAB --> AGG/BND
SPIB --> VCIT

I also hold STIP (iShares short term TIPs), but plan to keep that.

I hold FLRN (SPDR® Bloomberg Barclays Investment Grade Floating Rate ETF). Would something like VCSH (Vanguard short term Corp Bond ETF) be a good replacment for that (I know VCSH has longer durations) ? Or something like PIMCO's MINT ? or iShares Floating Rate ETF (FLOT) ?

I know there are bogleheads who would suggest sticking with AGG, but I prefer overweight shorter term bonds right now.

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unclescrooge
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Re: Changing Bond Market ETFs

Post by unclescrooge » Thu Sep 06, 2018 9:15 pm

I think GOVT is commission free at TDA right now... Unless you have an aversion to intermediate government treasuries.

livesoft
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Re: Changing Bond Market ETFs

Post by livesoft » Thu Sep 06, 2018 9:26 pm

I suggest you don't make any trades. You have not given any compelling reason at all to make any changes.

I own lots of VBTLX (aka BND), VBMFX, SPAB, FLRN, BIL, VCSH along with some AGG, BND, and FBIDX. They are spread among accounts at different financial institutions. I would not just sell one to buy another without a good reason.
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gostars
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Re: Changing Bond Market ETFs

Post by gostars » Fri Sep 07, 2018 12:16 am

SPAB and AGG track the exact same index, and BND tracks a variant of it. I don't see the point in changing.

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SlowMovingInvestor
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Re: Changing Bond Market ETFs

Post by SlowMovingInvestor » Fri Sep 07, 2018 6:57 am

I didn't explain the reason I wanted to change out of SPDR ETFs. Even if they track the same index, I prefer to keep fewer ETFs just to make management easier. Also, I prefer more liquid ETFs. The SPDR fixed income ETFs have picked up assets since TDAM started pushing them, but they're still well behind iShares and Vanguard's bond ETFs for the most part.

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