Having read other threads where ppl rebalance by selling VT and buying VTI+VXUS made me think about switching my sloow DCA to bonds. I don’t want to sell to rebalance. Right now my portfolio is mostly shares+cash. I think it’s time to move some cash to bonds.
The bonds I was checking are: V3GH CHCORP and GHYC.
The first one is rather small but it seems to be less risky than for example GHYC, which I picked because I still want to see the allocation going up (my cash is currently giving 1.5% interests so I’d like to get more than that).
Is there anyone having a similar bond group? Is it overkill? I’m DCAing so the total allocation of bonds in my portfolio is atm undecided
I have a pretty poor understanding of bond FUNDS, I don’t like how they fluctuate on the market.
If I was to get bonds I’d look to make a bond ladder myself, however I haven’t done any serious research, and preliminary research tells me Swiss govt bonds have basically near zero return for the effort.
I think the chance of losing money if you buy a good credit bond, bill or note (govt or even company) and hold it to maturity is next to zero (not considering inflation, which Switzerland doesn’t have). Hell, even 3-month Greek govt notes gave ~3.5% annual (around 2.5% now) and they never went bust, even in the 2012-2015 madness.
I said it’s better if dividends are lower than total returns.
Let’s take an example with same total returns but different dividends
Case 1 -: dividend 1.5% capital gain 1% , total return 2.5%
Case 2 -: dividend 3.5% , capital depreciation (-)1% , total return 2.5%
Case 1 is better from tax perspective. In case 1 dividends are lower than total returns.
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