Looks like it ticks all the boxes. I think my wife uses their domestic bond fund in her 401K.Kanto wrote: ↑Wed Jun 17, 2020 4:05 amHow does this Bond EFT look to you? It is currency hedged.eyeswideshut wrote: ↑Wed Jun 17, 2020 12:36 am I would also flag that BND is a US$ bond ETF so, assuming you are saving in JPY, you may want to confirm whether or not there is a currency hedged version as the exchange rate between USD and JPY can fluctuate significantly. Also to add my voice to others, the bond market is experiencing particularly high volatility these days (largely positive recently but that may change) and so there is a significant risk of capital depreciation should interest rates suddenly spike up. If you're a long term saver that shouldn't bother you but it is a risk if you are short term.
https://www.rakuten-sec.co.jp/web/fund/ ... 90C000DXF9
BND ETF as a savings account?
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eyeswideshut
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Re: BND ETF as a savings account?
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Fiddlegrrl
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Re: BND ETF as a savings account?
Not averse at all! I have VTI and eMaxis Advanced Govt Bond Index in addition to a couple other index equity ETFs. My main question was about what could be used as a savings account - something that could mimic a savings account but with low risk and a bit of interest.May I ask why you are adverse to stock index funds?
For example Rakuten Global (Vanguard VT) or Emaxis Slim All Country
https://www.rakuten-sec.co.jp/web/fund/ ... 90C000FHC4
https://www.rakuten-sec.co.jp/web/fund/ ... 90C000H1T1
On the subject of bonds, has anyone heard of Target Maturity Date Corporate Bond ETFs? They act like an ETF bond fund, but have a maturity date like regular bonds. Invesco Bulletshares has them, but I can't get them through Rakuten or SBI. Wondering if anything like that exists over here? Maybe this is something for a new thread...
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captainspoke
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Re: BND ETF as a savings account?
I'm not sure if they'll be available to you via your broker, but you might google "short term bond ETF". You'll probably get a half dozen, maybe 8-10. These have a shorter maturity and less volatility than mid or long term bonds. Certainly less interest rate volatility.
I think BND is an aggregate bond fund, so a mixture of short, mid, and long maturities--and therefore more price volatility than an exclusively short term fund.
I'm not familiar with Target Maturity Date Corporate Bond ETFs, but did google that, and saw some links to pros/cons of those, and so on. I didn't explore further, but would beware of liquidity, and also, since the investor seems to be choosing a maturity date, I'd wonder if there was some expectation that it would be held until then (perhaps a penalty/fee if you don't.
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Personally, I've never been comfortable with any kind of bond fund (personal bias), and if I were advising someone, I'd just say to leave the funds in cash. With interest rates low, and looking like they'll stay that way for quite a while, it doesn't look like there's much interest rate risk. But, famous last words, and other factors could also influence the market. Short term bonds funds don't pay much these days (~2%), minus transaction fees, so unless it's signifiant money, IMO not worth it.
I think BND is an aggregate bond fund, so a mixture of short, mid, and long maturities--and therefore more price volatility than an exclusively short term fund.
I'm not familiar with Target Maturity Date Corporate Bond ETFs, but did google that, and saw some links to pros/cons of those, and so on. I didn't explore further, but would beware of liquidity, and also, since the investor seems to be choosing a maturity date, I'd wonder if there was some expectation that it would be held until then (perhaps a penalty/fee if you don't.
**
Personally, I've never been comfortable with any kind of bond fund (personal bias), and if I were advising someone, I'd just say to leave the funds in cash. With interest rates low, and looking like they'll stay that way for quite a while, it doesn't look like there's much interest rate risk. But, famous last words, and other factors could also influence the market. Short term bonds funds don't pay much these days (~2%), minus transaction fees, so unless it's signifiant money, IMO not worth it.