Differences between "Total Bond" and "Global Bond" [Spain]

For residents of Spain.
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Ernest
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Joined: Tue Jan 05, 2016 9:56 am

Differences between "Total Bond" and "Global Bond" [Spain]

Post by Ernest »

Hi everybody! New at this fórum... but Boglehead investor for 2 years!

Well... the doubt i want to share with you is that I've been doing some simulations with the portfolio visualizer web tool (https://www.portfoliovisualizer.com/), and I've noticed that there's a clear diference in the results when using "Total Bond" and "Global Bond".

And, as you can test, using the "Total bond", works much better...

My fault is not to know what are the differences between them... (and if you see my portfolio below, you'll see that it "stinks" to be using "Global bond" rather than "Total bond"...)

My portfolio (I live in Europe, so the best I have been able to buy here is):

(24%) Amundi Fds Index Eq North America AE-C
(24%) Pictet Europe Index-R EUR
(10%) Amundi Fds Index Eq Pacific AE-C
(10%) Pictet Emerging Markets Index-R EUR

(16%) Amundi Fds Index Global Bd EUR Hedg AE-C
(17%) Pictet EUR Short Mid-Term Bonds-R

Any suggestion?

Thanks in advance,

Ernest.
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LadyGeek
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Re: Differences between "Total Bond" and "Global Bond"

Post by LadyGeek »

Welcome! What is your home country? You live in Europe, but is your home country part of the EU?

Our wiki has background information that may help: EU investing

Other countries are listed at the bottom of the article.
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CyberBob
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Re: Differences between "Total Bond" and "Global Bond"

Post by CyberBob »

Ernest wrote:...My fault is not to know what are the differences between them... (and if you see my portfolio below, you'll see that it "stinks" to be using "Global bond" rather than "Total bond"...)
PortfolioVisualizer lists their data sources for asset class returns here.

Total Bond Market
Ibbotson 1972
Barclays U.S. Aggregate Bond Index (see barcap.com) 1973-1990
Vanguard Total Bond Index Fund (VBMFX) 1991-2014

Global Bonds (Unhedged)
JP Morgan Global Government Bond 1987-1996
PIMCO Global Bond Fund (PIGLX) 1997-2014

One would assume that everything is in U.S. dollars, so that may skew things for someone investing in other currencies.
Topic Author
Ernest
Posts: 2
Joined: Tue Jan 05, 2016 9:56 am

Re: Differences between "Total Bond" and "Global Bond"

Post by Ernest »

LadyGeek, pleased to meet you!. My home Country is Spain. Thanks for the reference in the wiki for the EU investors!

CyberBob, thanks for your answer. You're right: it seems, "Total Bond" only have US bond values... that portfoliovisualizer.com reflects they have historically over-perfomed the multi-country "Global Bonds". I know that past revenues don't necessary mean same future returns... but I'll try to find some investment vehicle to have something like "Total Bond" in my portfolio.

Thanks!
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LadyGeek
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Re: Differences between "Total Bond" and "Global Bond" [Spain]

Post by LadyGeek »

You are welcome. I have retitled your thread to attract our EU investing experts. If you wish to change the title further, just edit the Subject: line in Post #1.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
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