VBIRX/BSV

Discussion of the Bond portion of the Permanent Portfolio

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Kevin K.
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VBIRX/BSV

Post by Kevin K. » Thu Sep 17, 2020 6:23 pm

Here's a bond fund (and ETF) I wasn't aware of:

https://investor.vanguard.com/mutual-fu ... view/vbirx

Short (~2.4 year) maturity, 70% Treasury/30% corporate and has never had a year where it lost money (including in '08). Given the paucity of reasonably safe options that are likely to over a positive real return it might be worth considering as a replacement for some or all of the STT and LTT allocation.
boglerdude
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Re: VBIRX/BSV

Post by boglerdude » Fri Sep 18, 2020 4:34 am

A 70s style grind to 5%+ on the 10 year would hammer the PP. Unlikely to happen, but for some protection I'm looking at

https://www.morningstar.com/etfs/arcx/pghy/quote
https://www.morningstar.com/funds/xnas/mdhax/quote

Here are the related funds https://i.imgur.com/jrGMzUt.png

credit risk so it'll tank in a panic, so ill keep 10-15% EDV.
Kevin K.
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Re: VBIRX/BSV

Post by Kevin K. » Wed Oct 14, 2020 6:50 pm

After much more research I'm going to retract my recommendation of BSV. The 2.9 year duration is a third longer short-term Treasury ETFs like VGSH and SCHO and the 35% or so corporates aren't going to do anyone any favors in a market meltdown - as we saw in March. No free lunch.
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