Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Euro Bond Index Fund?
Old 07-19-2007, 07:22 PM   #1
Recycles dryer sheets
Join Date: Sep 2006
Posts: 64
Euro Bond Index Fund?

I am attempting to give my sister the benefit of my vast knowledge of financial planning (ha!). She is a US citizen living in the Czech Republic. I think a good portion of the bonds in her asset allocation should be in Euro-denominated bonds. Vanguard offers European equity index funds, but not bond funds. Is there a Vanguard equivalent in Europe that has a low-cost index fund?


lifeisgood is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-19-2007, 10:26 PM   #2
Recycles dryer sheets
Join Date: May 2007
Posts: 290
If your sister is a US citizen, she would probably be better off avoiding the tax implications that come with buying mutual funds that are not registered in the US. Teach her how to make a ladder of individual bonds instead.

Added: Actually, while individual local bonds may be the lowest cost solution for her, the tax paperwork is not completely painless there either, since she will need to keep track of the exchange rates at which the bonds were bought and sold or matured in order to calculate the capital gains or losses in US dollar terms for the IRS (even if there were none from her perspective in her currency). This problem is avoided if she can get CDs there instead, for which she would only pay taxes on the interest.

Further added: I just noticed that you specified Euro-denominated bonds, not koruna. (I see that Google sez: CR will adopt the Euro in 2012 (maybe).) In that case, other possibilities are FXE and Everbank (if they will take her -- they may not).

bpp3 is offline   Reply With Quote
Old 07-20-2007, 07:15 PM   #3
Recycles dryer sheets
Join Date: Sep 2006
Posts: 64
Got that baaaaa sheepish feeling about assuming euro's instead checking to see what their currency is. Thanks for the advice about the non-US registered funds. Staying with US funds sounds good to me.

That raises the possibility of investing is US $ bonds, but finding a hedge against currency fluctuations. She has suffered these last years by having her assets and income in $$, but her expenses in crowns. With the dollar hitting record lows (at least against the euro, maybe the Czech crown also), this has eroded her purchasing power.

Thanks again for the advice.
lifeisgood is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Best choice: Bond Fund or CD or... redduck FIRE and Money 48 11-04-2006 10:28 AM
Indexed vs. Active Bond Fund TromboneAl FIRE and Money 10 04-05-2006 06:06 PM
Foreign bond closed end fund GIM e/r 0.7% preben FIRE and Money 2 03-31-2005 03:51 PM
Useful to hold foreign bond fund? soupcxan FIRE and Money 16 11-07-2004 05:20 AM
S&P 500 Asset Class question Cut-Throat FIRE and Money 1 12-30-2003 07:54 AM


All times are GMT -6. The time now is 12:35 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.