Tag Archive: My Portfolio

Taxable investment-grade bond ETFs

I am looking for an investment-grade bond ETF to round up my portfolio. The criteria I used include the following:

  • Low expenses : the lower the expense ratio, the better.
  • Diversification : for investment grade bond funds, generally the more holdings, the better.
  • Amount of assets & trading volume : generally the larger the better (improves liquidity, smaller trading spreads).
  • Duration : duration is a measure of the sensitivity of the fund price to interest rate changes. At this juncture in the economy, I would prefer not to go too long on duration.
  • Credit quality : no junk bond fund for me.

The ETFs that I narrowed down to include BSV, CSJ, AGG, BIV, CIU and LQD. These are listed in the table below:

From the look of it, I would probably go with CSJ,  the iShares Barclays 1-3 year credit bond ETF.

Rebalancing in market turmoil

The recent stock market turmoil has caused my portfolio to drift from its target asset allocation. With today’s drop, my portfolio YTD return has dropped to 2.2%, still positive for the year but the month-to-date return is a loss of 4.19%.

Today, I sold off a portion of my fixed income in two funds : Vanguard Intermediate-term Invest-grade bond fund, VFICX (up 0.42% today) and Vanguard TIPS bond fund, VIPSX (up 0.59% today) and intended to rebalance (buy) into the Vanguard Precious Metals and Mining fund, VGPMX and the Vanguard Emerging Market ETF, VWO.

The order purchase for VGPMX went through all right but the ETF order was not filled, mostly because I set the limit price too low at $79. The price of VWO did hit an intraday low of $77.72, but when I submitted the limit order, its price had already rebounded.

I might get better luck tomorrow. 😉