This is going to be a short update about actions I’m taking with our ETF Portfolio. The comment on my post about Choice of ETFs from Heidi Chua at Money Never Enough got me thinking about including a global bond ETF in our portfolio.
Although I considered her recommendation on the Vanguard Total Bond Market ETF (BND) trading on the NYSE, I decided to go with the following Vanguard Bond ETFs trading on the LSE instead:
For your information, VETY and VDTY were just listed for trading on the LSE a few weeks ago. I had to call Stan Chart Online Trading to inform them about these new ETFs as my orders for them were rejected. Once this issue is addressed and trading of VETY and VDTY are allowed for on Stan Chart Online Trading, I will start to purchase them as part of the global bond component of the ETF Portfolio. I have already started to include VGOV as this ETF was released a while back.
According to the 2016 estimated ETF distribution schedule, the distribution frequency is monthly and in GBP, EUR and USD. Having gone through the volatility in the equity markets the past year, I’m starting to have a new appreciation of diversified bond ETFs in the investment portfolio. Their returns may be lower than equity ETFs but they stabilise the portfolio and offer peace of mind in unstable times.