There is a lot of information about what bonds to invest if you happen to live in the US.
Being a European I'm probably better off with bonds denominated in EUR / hedged to EUR to avoid currency risk. Which kind of bond ETFs would fit into the 60-40 portfolio?
Recently I see the following:
- US bond ETFs in USD performed well,
- US bond ETFs hedged to EUR performed poorly - it seems to be currency-related,
- Eurozone bond ETFs performed poorly - I guess it's inflation,
- Eurozone inflation linked bond ETFs performed well,
- Emerging Markets bond ETFs performed like a charm - that's probably due to the risk.
Are the Eurozone inflation linked bonds a sensible choice or am I overlooking something? Thanks!
