What’s The Bull Case For International Bond ETFs?
Written by David Fabian, November 21st, 2017
This week’s ETF column was spawned by a thought-provoking statement on Twitter from one of my favorite follows @econompic. He deftly pointed out the disparity in current yield between a risk-free savings account in the United States versus the paltry income derived from broad-based international bond ETFs.
For example, one can now easily earn 1.25% (or greater) in a savings or money market account versus the 0.73% current yield of the Vanguard International Bond ETF (BNDX). This exchange-traded fund is considered one share class of the broader Vanguard International Bond mutual fund series, which combined house over $94 billion in total assets.