We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Vanguard hedged global bond index vs. VLS as the bond element decreases

13»

Comments

  • aroominyork
    aroominyork Posts: 3,925 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    1. Upweighting the UK
    2. Rebalancing - if you bought 80% of VLS 100 and 20% of a hypothetical VLS 0% equity, the bond weight will fall over the longer term, rebalancing adjusts for this so using simultaneous equations won't work.
    3. UK investment grade bonds cannot be compared with the global bond index - the latter is mostly gov bonds, the former is mostly corporate bonds. They are different asset classes.
    have UK corporate bonds outperformed global govt bonds during recent years? 

    BoE has been a net buyer of Corporate Bonds under the various stimulus programmes. 
    More so than other Western countries? 
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.6K Banking & Borrowing
  • 254.5K Reduce Debt & Boost Income
  • 455.5K Spending & Discounts
  • 247.5K Work, Benefits & Business
  • 604.3K Mortgages, Homes & Bills
  • 178.5K Life & Family
  • 261.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.