Bonds: IBTA / VAGU?

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TSRA
Posts: 8
Joined: Sun Oct 31, 2021 3:44 pm

Bonds: IBTA / VAGU?

Post by TSRA »

Hello!

I have two bonds ETFs in my portfolio: iShares $ Treasury Bond 1-3yr UCITS ETF USD (Acc) and Vanguard Global Aggregate Bond UCITS ETF USD Hedged Accumulating.

As I have limited knowledge of bonds, I'd like to know the differences and impacts of investing in each of them on my Boglehead portfolio.

Is it a good idea to have both of them or should I stick with just one?

Thanks! :sharebeer
Laurizas
Posts: 487
Joined: Mon Dec 31, 2018 3:44 am
Location: Lithuania

Re: Bonds: IBTA / VAGU?

Post by Laurizas »

Ishares has lower duration so it is less sensitive to changing interest rates.

Ishares has only US bonds, so it could be said that you are less diversified because Vanguard has bonds from more countries.
Valuethinker
Posts: 46953
Joined: Fri May 11, 2007 11:07 am

Re: Bonds: IBTA / VAGU?

Post by Valuethinker »

Laurizas wrote: Wed Feb 08, 2023 3:21 am Ishares has lower duration so it is less sensitive to changing interest rates.

Ishares has only US bonds, so it could be said that you are less diversified because Vanguard has bonds from more countries.
The Original Poster has not posted any links so that makes it difficult for someone to comment - I don't keep these links on my browser tabs.

Credit quality would likely be a significant difference.
Topic Author
TSRA
Posts: 8
Joined: Sun Oct 31, 2021 3:44 pm

Re: Bonds: IBTA / VAGU?

Post by TSRA »

Here is the factsheet for IBTA https://www.google.com/url?sa=t&source= ... OfjR_O5f-3
It's a short term US treasury bond

And the other one VAGU https://fund-docs.vanguard.com/Global_A ... INT_EN.pdf

It's a global aggregate bond.

I know both of them are acceptable options and at the same time different products. What is your opinion on having both ETFs, impacts on the long run?

Thank you.
DJN
Posts: 996
Joined: Sun Nov 19, 2017 11:30 pm

Re: Bonds: IBTA / VAGU?

Post by DJN »

Yah shure. | Have a look at the Bogleheads Wiki in the first instance.
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