UK - which global bond fund is better?

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ukbogler
Posts: 68
Joined: Mon Sep 30, 2019 4:38 am

UK - which global bond fund is better?

Post by ukbogler » Wed Oct 02, 2019 9:14 am

Looking to set up the third portion of my bogler pertfolio - the global bonds element.

However, I can't figure out which ETF / fund to use. There seem to be many, doing essentially the same thing, with only minor differences in costs.

EG you have the Vanguard Global Bond Index, which is a fund (at 0.15% fees) or there's the GLAB spider, which is an ETF (at 0.1%) and even AGBP, another ETF from ishares also at 0.1%.

Is there any real difference, or are they all as good as each other??? Any advice welcomed...

Valuethinker
Posts: 38968
Joined: Fri May 11, 2007 11:07 am

Re: UK - which global bond fund is better?

Post by Valuethinker » Wed Oct 02, 2019 10:04 am

ukbogler wrote:
Wed Oct 02, 2019 9:14 am
Looking to set up the third portion of my bogler pertfolio - the global bonds element.

However, I can't figure out which ETF / fund to use. There seem to be many, doing essentially the same thing, with only minor differences in costs.

EG you have the Vanguard Global Bond Index, which is a fund (at 0.15% fees) or there's the GLAB spider, which is an ETF (at 0.1%) and even AGBP, another ETF from ishares also at 0.1%.

Is there any real difference, or are they all as good as each other??? Any advice welcomed...
None of us carry ticker codes around in our heads ("T" was American Telephone & Telegraph, that one I remember; and MSFT - some company Paul Allen founded ;-)).

So. Can I suggest you lay out the fund names, expense ratios & links to the pages that describe the funds?

Topic Author
ukbogler
Posts: 68
Joined: Mon Sep 30, 2019 4:38 am

Re: UK - which global bond fund is better?

Post by ukbogler » Wed Oct 02, 2019 10:32 am

Valuethinker wrote:
Wed Oct 02, 2019 10:04 am

None of us carry ticker codes around in our heads
[Deleted - mod oldcomputerguy] Don't disillusion me dude! :D :D

My abject apologies, here are three links.

Vanguardg Global Bond INdex
https://www.hl.co.uk/funds/fund-discoun ... dex-income

SPDR ETF
https://www.hl.co.uk/shares/shares-sear ... tf-gbp-hdg

iShares ETF
https://www.hl.co.uk/shares/shares-sear ... tf-gbp-hdg

I wasn't trying to make you guys work, BTW, I just hoped someone might already have done this, and could share the knowledge...

glorat
Posts: 279
Joined: Thu Apr 18, 2019 2:17 am

Re: UK - which global bond fund is better?

Post by glorat » Wed Oct 02, 2019 11:17 am

And Vanguard recently and quietly launched an etf flavour (VAGP from memory) that like all the ETFs you've listed track the same global aggregate bond index hedged to GBP and all 3 have a 0.1% expense ratio.

There may be some subtle differences between the three (securities lending and tracking methodologies) but my prior homework suggests all 3 etf flavours are fine

Topic Author
ukbogler
Posts: 68
Joined: Mon Sep 30, 2019 4:38 am

Re: UK - which global bond fund is better?

Post by ukbogler » Wed Oct 02, 2019 1:51 pm

glorat wrote:
Wed Oct 02, 2019 11:17 am
And Vanguard recently and quietly launched an etf flavour (VAGP from memory) that like all the ETFs you've listed track the same global aggregate bond index hedged to GBP and all 3 have a 0.1% expense ratio.

There may be some subtle differences between the three (securities lending and tracking methodologies) but my prior homework suggests all 3 etf flavours are fine
Thanks fella, cheapest it is then.

xxd091
Posts: 92
Joined: Sun Aug 21, 2011 4:41 am
Location: UK

Re: UK - which global bond fund is better?

Post by xxd091 » Thu Oct 03, 2019 3:12 am

73-16 years Retd
Used Vanguard Global Bond Index Fund hedged to the Pound for many years
ETFs not available at that time-long ago!
Major part of Portfolio-65%
Made my pile-do not want to lose it!
Returned 5%pa over last 10 years(Vanguard web site)-less going forward?
Done the business-cheap,easy to follow
xxd091

Topic Author
ukbogler
Posts: 68
Joined: Mon Sep 30, 2019 4:38 am

Re: UK - which global bond fund is better?

Post by ukbogler » Thu Oct 03, 2019 4:03 am

thanks xxd. I think I'll go with the ETFs. Cheaper, and you can get out fast if you want to. I *hate* the way you buy funds 'wait till tomorrow. Maybe the day after. Then we'll tell you what price you got".

minimalistmarc
Posts: 496
Joined: Fri Jul 24, 2015 4:38 pm

Re: UK - which global bond fund is better?

Post by minimalistmarc » Thu Oct 03, 2019 7:15 am

ukbogler wrote:
Thu Oct 03, 2019 4:03 am
thanks xxd. I think I'll go with the ETFs. Cheaper, and you can get out fast if you want to. I *hate* the way you buy funds 'wait till tomorrow. Maybe the day after. Then we'll tell you what price you got".

Me too.

But that’s why Mr Bogle preferred funds to ETFs. He was concerned that ETFs encouraged trading because they lacked that mental barrier to sell.

Topic Author
ukbogler
Posts: 68
Joined: Mon Sep 30, 2019 4:38 am

Re: UK - which global bond fund is better?

Post by ukbogler » Thu Oct 03, 2019 8:45 am

minimalistmarc wrote:
Thu Oct 03, 2019 7:15 am
ukbogler wrote:
Thu Oct 03, 2019 4:03 am
thanks xxd. I think I'll go with the ETFs. Cheaper, and you can get out fast if you want to. I *hate* the way you buy funds 'wait till tomorrow. Maybe the day after. Then we'll tell you what price you got".

Me too.

But that’s why Mr Bogle preferred funds to ETFs. He was concerned that ETFs encouraged trading because they lacked that mental barrier to sell.
Now that's an interesting point. Still means when you first invest, you have to make a leap of faith... purchasing a FTSE 100 at the wrong time this week could have cost you 3% magically...

Valuethinker
Posts: 38968
Joined: Fri May 11, 2007 11:07 am

Re: UK - which global bond fund is better?

Post by Valuethinker » Thu Oct 03, 2019 10:48 am

ukbogler wrote:
Wed Oct 02, 2019 10:32 am
Valuethinker wrote:
Wed Oct 02, 2019 10:04 am

None of us carry ticker codes around in our heads
[Deleted - mod oldcomputerguy] Don't disillusion me dude! :D :D

My abject apologies, here are three links.
Sorry. It's a pet bugbear of mine - I should not have rounded on you.
Vanguardg Global Bond INdex
https://www.hl.co.uk/funds/fund-discoun ... dex-income

SPDR ETF
https://www.hl.co.uk/shares/shares-sear ... tf-gbp-hdg

iShares ETF
https://www.hl.co.uk/shares/shares-sear ... tf-gbp-hdg

I wasn't trying to make you guys work, BTW, I just hoped someone might already have done this, and could share the knowledge...
They all look pretty good assuming the platform fees are comparable?

If this is in a tax deferred account (ISA or Pension) you can use an Accumulating Fund. However if not then you want a distributing fund, but you will need to handle reinvesting dividends.

Topic Author
ukbogler
Posts: 68
Joined: Mon Sep 30, 2019 4:38 am

Re: UK - which global bond fund is better?

Post by ukbogler » Thu Oct 03, 2019 2:05 pm

The Vanguard is a fund, at 0.15%. The others are ETFs, at 0.1% ecah. I think I'll go with the one that's been established longest...

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