Global Bond ETF

For residents of the United Arab Emirates.
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Topic Author
Jaxx
Posts: 32
Joined: Mon Aug 17, 2015 1:43 pm

Global Bond ETF

Post by Jaxx »

Hi guys,

Hope you have enjoyed the holidays! Merry Christmas!

I am a relatively new investor and want to keep it simple.

I am a Cypriot citizen living in the UAE.

So I have invested in the Vanguard World Stock ETF and looking to add a global bond etf equivalent.

However, I have found a Global Bond Fund with Vanguard, but it seems you need a min of GBP100k (which I unfortunately do not have) and its not an ETF.

https://americas.vanguard.com/instituti ... ##overview

The idea is to have a mixed basket of bonds on a global scale - US and non US.

Does anyone have any suggestions for equivalents? I have been looking but not been successful so far.

Alternatively, I could go for Vanguard's Total Bond market and its International Bond Index Fund.

Thoughts?

Best regards

Jaxx.
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hollowcave2
Posts: 1790
Joined: Thu Mar 01, 2007 2:22 pm
Location: Sacramento, CA

Re: Global Bond ETF

Post by hollowcave2 »

There is a Total International Bond ETF (BNDX) which may suit your needs. If you want to reach for more yield, there is also an Emerging Markets Bond (VWOB) ETF which can be used to complement your holdings.

And ETFs have the advantage of no minimums. But you do need a brokerage account to buy them.

Good luck
Topic Author
Jaxx
Posts: 32
Joined: Mon Aug 17, 2015 1:43 pm

Re: Global Bond ETF

Post by Jaxx »

Thanks!
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in_reality
Posts: 4529
Joined: Fri Jul 12, 2013 6:13 am

Re: Global Bond ETF

Post by in_reality »

hollowcave2 wrote:There is a Total International Bond ETF (BNDX) which may suit your needs. If you want to reach for more yield, there is also an Emerging Markets Bond (VWOB) ETF which can be used to complement your holdings.

And ETFs have the advantage of no minimums. But you do need a brokerage account to buy them.

Good luck
BNDX is hedged to the USD so you'll have 100% exposure to USD. Unless you plan on retiring in the States (or otherwise spending in USD), that might not be the wisest choice.

iShares has some Ireland domiciled ETFs such as CORP (Dev and Emerging corporate bonds) and IGLO (Dev Govs). They are distributing though if that makes a difference.
Topic Author
Jaxx
Posts: 32
Joined: Mon Aug 17, 2015 1:43 pm

Re: Global Bond ETF

Post by Jaxx »

The idea is to have global coverage for bonds like I do with the vanguard world stock etf, so would add vanguard international bond etf as well - so keeping it simple
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in_reality
Posts: 4529
Joined: Fri Jul 12, 2013 6:13 am

Re: Global Bond ETF

Post by in_reality »

Jaxx wrote:The idea is to have global coverage for bonds like I do with the vanguard world stock etf, so would add vanguard international bond etf as well - so keeping it simple
Do understand that you are all USD then.

The Vanguard world stock etf is not 100% USD exposure. It's maybe 53%.

BND +BNDX is 100% USD exposure.
Topic Author
Jaxx
Posts: 32
Joined: Mon Aug 17, 2015 1:43 pm

Re: Global Bond ETF

Post by Jaxx »

in_reality wrote:
Jaxx wrote:The idea is to have global coverage for bonds like I do with the vanguard world stock etf, so would add vanguard international bond etf as well - so keeping it simple
Do understand that you are all USD then.

The Vanguard world stock etf is not 100% USD exposure. It's maybe 53%.

BND +BNDX is 100% USD exposure.

Any other alternatives you have in mind. Not looking to retire to the US. Went for the Vanguard world stock etf as have been living in different places over the years and not 100% sure where I would want to retire. I am U citizen so probably there but who knows.
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