Markola
Thinks s/he gets paid by the post
Our Vanguard advisor has always had our 50/50 portfolio’s bond side allocated 20% International Bond Index (VTABX) and 30% domestic Total Bond Index (VBTLX). I was skeptical but have liked the extra diversification exposure: VBTLX = 10,174 holdings + VTABX = 6,787 holdings (the latter are currency-hedged.). As John Bogle said, “The only free lunch is diversification.”
This isn’t the thread to argue funds vs. individual bonds, as I’m not changing. But I thought it might be interesting to others to see that, over time, international is, in fact, doing its job as ballast just a little better than domestic.
1 Year Returns:
VTABX = -13.10%
VBTLX = -14.66%
5 year Returns:
VTABX = -.01%
VBTLX = -.26%
And since the 2014 inception of the younger VTABX:
This isn’t the thread to argue funds vs. individual bonds, as I’m not changing. But I thought it might be interesting to others to see that, over time, international is, in fact, doing its job as ballast just a little better than domestic.
1 Year Returns:
VTABX = -13.10%
VBTLX = -14.66%
5 year Returns:
VTABX = -.01%
VBTLX = -.26%
And since the 2014 inception of the younger VTABX:
