I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

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barberakb
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I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by barberakb »

I need some more bonds in my portfolio.

What vanguard funds to you guys/gals recommend?

I have been buying mainly BND. But am also looking for some international bond exposure.

Current allocation has ballooned to 83% stocks which is good for me but need to rebalance some.

Thanks!
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Cocoa Beach Bum
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by Cocoa Beach Bum »

If you want non-USD denominated bonds, consider either BNDX (International) or BNDW (Global). You might also consider Vanguard's two new US bond ETFs, announced at: Vanguard Expands ETF Lineup with Two Active Bond ETFs. Unlike equity funds, fixed income active management has provided superior returns in the past.
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bertilak
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by bertilak »

barberakb wrote: Tue Apr 02, 2024 4:05 pm I need some more bonds in my portfolio.

What vanguard funds to you guys/gals recommend?

I have been buying mainly BND. But am also looking for some international bond exposure.

Current allocation has ballooned to 83% stocks which is good for me but need to rebalance some.

Thanks!
BNDX is the international equivalent of BND.
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backpacker61
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by backpacker61 »

As I understand it, many bogleheads pass on international bonds, even if they do invest in international equities.

https://www.bogleheads.org/wiki/Develop ... _investing

If this is in a taxable brokerage account, you could consider whether tax exempt municipal bonds would be appropriate at your marginal tax rate.
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retiredjg
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by retiredjg »

barberakb wrote: Tue Apr 02, 2024 4:05 pm I need some more bonds in my portfolio.

What vanguard funds to you guys/gals recommend?

I have been buying mainly BND. But am also looking for some international bond exposure.

Current allocation has ballooned to 83% stocks which is good for me but need to rebalance some.

Thanks!
International bond exposure presents a problem. This fund should go in a tax-deferred account, but very few work plans offer this asset class at all. So you could put it in an IRA, but many people don't have a traditional IRA these days and many do not want bonds in Roth IRA.

If you can't get a low cost international bond fund in your work plan and don't have an IRA...just give up on international bonds. That's not really much of a problem and certainly not a fatal flaw in your portfolio.

If you do have international bonds available in one of those places, the expense ratio will determine if you want to use it or not.
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Cocoa Beach Bum
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by Cocoa Beach Bum »

backpacker61 wrote: Tue Apr 02, 2024 4:54 pm As I understand it, many bogleheads pass on international bonds, even if they do invest in international equities.
...
I'm sure you're correct, but those nattering nabobs of negativism have missed out on BNDX's superior performance over BND since its inception: BNDX v BND Performance.
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retiredjg
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by retiredjg »

Performance does not matter if you have no place to put that asset class.
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Cocoa Beach Bum
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by Cocoa Beach Bum »

retiredjg wrote: Tue Apr 02, 2024 5:31 pm Performance does not matter if you have no place to put that asset class.
How does this answer OP's question?
barberakb wrote: Tue Apr 02, 2024 4:05 pm I need some more bonds in my portfolio.

What vanguard funds to you guys/gals recommend?

I have been buying mainly BND. But am also looking for some international bond exposure.
...
Or maybe you think OP asked a naïve question, undeserving a response?
Last edited by Cocoa Beach Bum on Tue Apr 02, 2024 6:27 pm, edited 1 time in total.
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retiredjg
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by retiredjg »

The original poster's question is which Vanguard fund to use for international bonds. As far as I know there is only 1 such fund and somebody has already identified it.

But it does not matter what it is or how many are available unless the original poster has a place to hold the international bond fund. Many people do not, so that's the first thing for the original poster to consider.

If a person wants to hold this asset class and has a place to put it, performance may be interesting, but is irrelevant.
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Cocoa Beach Bum
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by Cocoa Beach Bum »

retiredjg wrote: Tue Apr 02, 2024 6:25 pm...
If a person wants to hold this asset class and has a place to put it, performance may be interesting, but is irrelevant.
It's obvious he plans to hold any international Vanguard bond ETFs (BNDX or BNDW) wherever he's holding his current BND holdings. How is that so difficult to understand? Why try to complicate/muddle OP's question?
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retiredjg
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by retiredjg »

Cocoa Beach Bum wrote: Tue Apr 02, 2024 6:35 pm
retiredjg wrote: Tue Apr 02, 2024 6:25 pm...
If a person wants to hold this asset class and has a place to put it, performance may be interesting, but is irrelevant.
It's obvious he plans to hold any international Vanguard bond ETFs (BNDX or BNDW) wherever he's holding his current BND holdings. How is that so difficult to understand? Why try to complicate/muddle OP's question?
That is not obvious at all. There may be a total bond fund available in the work plan, but no international bond fund available. The fact is we know nothing about what is available for this poster.

I don't understand why your posts seem so hostile. If I said something you found offensive, it was unintentional and you should just ignore it. Either way, I'm not interested in continuing this conversation further.

Barberakb, please excuse this distraction. :(
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barberakb
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by barberakb »

backpacker61 wrote: Tue Apr 02, 2024 4:54 pm As I understand it, many bogleheads pass on international bonds, even if they do invest in international equities.

https://www.bogleheads.org/wiki/Develop ... _investing

If this is in a taxable brokerage account, you could consider whether tax exempt municipal bonds would be appropriate at your marginal tax rate.
Thanks, i am interested in these possibly now. I was in New Mexico before and the market was limited, but I just moved to Maryland so maybe
there is more options here.
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barberakb
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Re: I need some more bonds in my portfolio. What vanguard funds to you guys/gals recommend?

Post by barberakb »

Cocoa Beach Bum wrote: Tue Apr 02, 2024 5:28 pm
backpacker61 wrote: Tue Apr 02, 2024 4:54 pm As I understand it, many bogleheads pass on international bonds, even if they do invest in international equities.
...
I'm sure you're correct, but those nattering nabobs of negativism have missed out on BNDX's superior performance over BND since its inception: BNDX v BND Performance.
Thanks,

that negativity will get ya :sharebeer
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