Bond type composition of the entire US bond market

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Money Market
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Bond type composition of the entire US bond market

Postby Money Market » Sun Jun 18, 2017 2:55 pm

The index that Vanguard Total Bond Index Fund (VBTLX) tracks an index that includes only treasuries, government agencies, and other investment-grade bonds, but excludes TIPS and junk bonds. I am wondering if there's a nice chart and index available that shows the actual total US bond market composition by type along with the percentages. I can't seem to find this specific information. The best I could find was from here

https://en.wikipedia.org/wiki/Bond_mark ... arket_size

but it doesn't specifically break the information into a more granular form to include types such as TIPs or junk.

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abuss368
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Re: Bond type composition of the entire US bond market

Postby abuss368 » Sun Jun 18, 2017 2:56 pm

Did you by chance check the Bogleheads wiki? That is usually a good point of reference.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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siamond
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Re: Bond type composition of the entire US bond market

Postby siamond » Sun Jun 18, 2017 5:49 pm


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patrick013
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Re: Bond type composition of the entire US bond market

Postby patrick013 » Sun Jun 18, 2017 7:34 pm

Outstanding U.S. Bond Market Debt :

SIFMA
age in bonds, buy-and-hold, 10 year business cycle

Money Market
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Re: Bond type composition of the entire US bond market

Postby Money Market » Sun Jun 18, 2017 9:14 pm



Great, exactly what I was looking for

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Tyler Aspect
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Re: Bond type composition of the entire US bond market

Postby Tyler Aspect » Sun Jun 18, 2017 9:26 pm

Past result does not predict future performance. Mentioned investments may lose money. Contents are presented "AS IS" and any implied suitability for a particular purpose are disclaimed.

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nisiprius
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Re: Bond type composition of the entire US bond market

Postby nisiprius » Mon Jun 19, 2017 6:45 am

"The entire U.S. bond market" is tricky because there isn't any single unified bond exchange (or tightly-linked group of bond exchanges).

The Bloomberg Barclay's U.S. Universal index is supposed to be a truly total bond market index. There's at least one ETF that indexes to it, IUSB. They used to have a factsheet for the index that showed very clearly the relationship, but currently Bloomberg and/or Barclay's are somewhat messed up and I can't find it. A lot of information about the comparison can be found in this Morningstar article, A More Inclusive U.S. Aggregate Bond Index, notably this chart:
Image
"only 8% of the Universal Index's market cap comprises bonds with below-investment-grade credit ratings."

Comparing IUSB with Total Bond, there's been some difference during the three years IUSB has existed, but not much.

Source
Image

It's my personal belief that complaints about Total Bond Market Index Fund not being "total" are legitimate in terms of marketing--they shouldn't have used the word "total"--but apart from that, a lot of it is like complaints about the S&P 500 index--an indirect way of attacking indexing itself. For example, opinions can differ but personally, I want my own bond investments to be in investment-grade bonds. I think it's completely appropriate for a core bond fund like Total Bond to track an index of investment-grade bonds, and let those who want junk bonds add a separate allocation to VWEHX.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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nisiprius
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Re: Bond type composition of the entire US bond market

Postby nisiprius » Mon Jun 19, 2017 6:59 am

P.S. The last time I looked, to the best of my memory, United States Savings Bonds constituted a full 1% of all Treasury debt. However, because they are non-marketable securities, they are not included in any index or any mutual fund. I don't know what a purist ought to do about that.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.


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