Wednesday, April 11, 2007

Bond ETFs from Vanguard

Vanguard has created more bond ETFs. At this point, you can use ETFs for the entire portion of your indexed portfolio in bonds.

They are:

BND: Vanguard Total Bond Market Index (note: this one has big competition in AGG. Vanguard's ETF has a 0.11% expense ration vs 0.20% for AGG. Vanguard replicates the whole index, while AGG samples the index.
BSC: Vanguard Short Term Bond
BIV: Vanguard Intermediate Term Bond
BLV: Vanguard Long Term Bond

The only thing really missing here is an inflation-protected bond index like TIP.

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