Global aggregate bond vs US treasury bond : eupersonalfinance


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.



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