RetireJapan

Rakuten has wrapped Vanguard BNDW into a hedged bond fund.

楽天・全世界債券インデックス（為替ヘッジ）ファンド

Rakuten->　https://www.rakuten-sec.co.jp/web/fund/ ... 90C000HBG4
Vanguard ->　https://investor.vanguard.com/etf/profi ... folio/bndw

Rakuten fees -> 0.282%　（Vanguard .15 + Rakuten .13)

............................

The common bond fund recommendation here, and elsewhere, seems to be Exmaxis slim Government Advanced (Or the Nissei or Tawara alternatives)

ｅＭＡＸＩＳ Ｓｌｉｍ 先進国債券インデックス

Link-> https://www.rakuten-sec.co.jp/web/fund/ ... 90C000END3

Real cost -> 0.170%

............................

I am considering going 50/50 between these two funds for my bond allocation. I am hesitant due to Rakuten's annoyingly high fees and currency hedging, which is not optimal for a bond fund in Japan.

However, US corporate bond exposure is hard to come by here. Most funds are very expensive or are US-domiciled ETFs traded in US dollars.

Thoughts?

I am 92% equities 8% bonds currently.

I will switch my bond fund to Rakuten VANGUARD BNDW Wrap / 全世界債券インデックス（為替ヘッジ）ファンド for now.

I will allocate back up to 90/10 and keep it that way as that was the original plan.

..............

Reasoning ｅＭＡＸＩＳ Ｓｌｉｍ 先進国債券インデックス has sat like a lump on a log. Sovereign debt is not likely to move for some time.

Rakuten VANGUARD BNDW Wrap / 全世界債券インデックス（為替ヘッジ）ファンド is a bit more diversified with a mix of government and corporate debt. It is after all the "Whole" bond market.

..............

That fee is steep though....