I plan on allocating 10% of my portfolio to bonds but I’m divided on which to go for:
VDTA: US government treasury bonds with maturities between 1-10 years. Holdings = 261
TER = 0.07%
VAGU: Global aggregate bonds with a mix of government and corporate. Holdings = 4700 bonds
TER = 0.10%
Corporate bonds are positively correlated to stocks which makes them a poor hedge compared to government bonds.
VAGU is more diversification than VDTA so concentration risks are lower.
These are my thoughts. I could use some perspective, thanks.