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Learning, Sharing, and Teaching => Investor Alley => Topic started by: c-kat on December 30, 2017, 05:42:35 PM

Title: Canadians do you buy international bond ETFS as well as domestic?
Post by: c-kat on December 30, 2017, 05:42:35 PM

Hello,

I currently own VAB for Canadian bond exposure. I was looking at some of the vanguard portfolios and noticed that they were recommending it be complimented with VBU (US bonds) and VBG (global bonds). Makes sense to me. If one is going to diversify equities outside of their own country, why not do the same with the bond portion of the portfolio.  Any thoughts on this?  Anyone else doing this?

Best,

Ckat

Title: Re: Canadians do you buy international bond ETFS as well as domestic?
Post by: Heckler on December 30, 2017, 06:21:14 PM

No. Fx rates then also affect the bonds which are supposed to be safe and steady.

Title: Re: Canadians do you buy international bond ETFS as well as domestic?
Post by: Heckler on December 30, 2017, 06:28:57 PM

PS

http://canadiancouchpotato.com/2014/08/29/ask-the-spud-should-i-use-global-bonds/

Title: Re: Canadians do you buy international bond ETFS as well as domestic?
Post by: Retire-Canada on December 30, 2017, 07:31:59 PM

I don't buy any bonds so no to international bonds. I plan to buy some bonds when I FIRE, but I will stick to CDN bonds. The purpose of the bonds is to get me through an early sequence of returns risk so I don't want to introduce currency risk into the equation.

Title: Re: Canadians do you buy international bond ETFS as well as domestic?
Post by: RichMoose on December 30, 2017, 11:24:59 PM

No, I don't own any bonds at the moment. If my strategy calls for a bond allocation it will be Canadian bonds only. Likely just short-term bonds to reduce volatility.