Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Int'l Bond ETF - Brewer ??
Old 11-15-2007, 11:10 PM   #1
Recycles dryer sheets
 
Join Date: Apr 2007
Posts: 292
Int'l Bond ETF - Brewer ??

I am hoping to hear from Brewer on this, but others are welcome to comment as well.

I am looking to add some non-correlated asset classes and came across the BWX International Bond ETF and the PCY Emerging Markets Soverign Bond ETF.

I currently have the Fidelity FBIDX and FTBFX which seem to have a very small international bond exposure.

I saw previous recommendations for GIM.

My macro allocation is 60% equity / 40% bond funds + I Bonds + CD + MM. Within equity I have about 35% foreign (5% china, 5% asia ex-china, 5% latin america, 2% africa). It seems that africa equity is also non-correlated.

I am thinking to get up to 10% total (or 25% of bonds) into some foreign bond funds, with 1-2% total into EM bonds.

Is BWX ok? What is the current thinking on GIM?

Are there any similar new Vanguard ETF offerings? Since I am with FIDO I prefer Vanguard ETF's to avoid the FIDO fee.

My preference would be high quality foreign (e.g. government), index or no load funds or ETFs, without currency hedging.

Thanks.
__________________

__________________
joesxm3 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 Early-Retirement.org 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 11-16-2007, 04:46 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
I haven't looked at the new ETFs yet, so I can't comment. I will try to look today, but my office is moving in the middle of a market "event" so I don't know if I will get to it today.

I still think GIM is an excellent choice, but only when you can buy it at a discount to NAV. Currently trading at a premium and has been for a while.

BEGBX is my other choice, but I may toss it in favor of the ETFs if I can get comfy with them.

I would stick to higher grade sovereigns. 10% of the port sounds about right for a 60/40 port.

African equity? What are there, two of them?
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 11-16-2007, 08:16 AM   #3
Recycles dryer sheets
 
Join Date: May 2007
Posts: 290
Quote:
Originally Posted by joesxm View Post
My preference would be high quality foreign (e.g. government), index or no load funds or ETFs, without currency hedging.
BWX would fit the bill, if you don't mind the expense ratio. 0.5% seems
a bit high to me for bonds, though it is still the cheapest out there as far as I know.
__________________
bpp3 is offline   Reply With Quote
Old 08-31-2009, 10:03 AM   #4
Thinks s/he gets paid by the post
IndependentlyPoor's Avatar
 
Join Date: Jul 2009
Location: Austin
Posts: 1,142
I just sold our entire BWX (international bond ETF) position. It was 5% of our portfolio. I didn't want to do it, but they haven't paid a dividend in four months and I can't abide that any longer. Their stated reason for the suspension seems ridiculous: currency fluctuations. My broker called around and reported that they are having to "absorb write-downs" before dividends resume. That is really creepy. They are under new management and playing games with dividends is just too much for me.

So no more international bonds in our portfolio. Will have to figure out what to do with that chunk now.

Oh well. We made a little money on it.
__________________
IndependentlyPoor is offline   Reply With Quote
Old 08-31-2009, 06:27 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,487
Quote:
Originally Posted by brewer12345 View Post
I still think GIM is an excellent choice, but only when you can buy it at a discount to NAV. Currently trading at a premium and has been for a while.
I've been looking at GIM, but I have never bought a CEF before. What is a reasonable discount to NAV to wait for?

Thanks!

Audrey
__________________
audreyh1 is online now   Reply With Quote
Old 08-31-2009, 06:36 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
For GIM, a 5% discount would be attractive based on its history.

FWIW, I booted BEGBX a little while ago when the manager if the fund was abruptly changed with little reason given. I will re-evaluate after some time, but in the meantime GIM is my chosen vehicle when it is at NAV or less.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Reply


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
New ETF: Muni Bond Funds for CA (and NY) tricky88 Stock Picking and Market Strategy 3 11-15-2007 11:41 PM
Int'l BOnd Funds - Hedged? BOBOT FIRE and Money 7 12-13-2006 01:38 PM
Municipal Bond ETF? haha FIRE and Money 9 06-06-2006 06:52 AM
Selling Tweedy, Browne for Powershares Int'l Div ETF Nords FIRE and Money 28 05-16-2006 02:29 AM
Brewer & other bond experts? Nords FIRE and Money 3 04-15-2005 06:32 AM

 

 
All times are GMT -6. The time now is 07:24 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.