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Bonds: IBTA / VAGU?

Posted: Wed Feb 01, 2023 2:03 pm
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

Re: Bonds: IBTA / VAGU?

Posted: Wed Feb 08, 2023 3:21 am
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.

Re: Bonds: IBTA / VAGU?

Posted: Wed Feb 08, 2023 3:41 am
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.

Re: Bonds: IBTA / VAGU?

Posted: Wed Feb 15, 2023 1:59 am
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.

Re: Bonds: IBTA / VAGU?

Posted: Wed Feb 15, 2023 6:20 am
by DJN