Buying Bonds? This International Bond ETF Has Outperformed U.S. Bonds for 10 Years

Impact · against what's priced in

The article suggests a tactical shift toward emerging market bonds (VWOB) over US aggregates (BND) due to a breakdown in the traditional stock-bond hedge and higher yields in riskier markets. While VWOB has strong historical momentum, the systemic risk of increased government debt and positive stock-bond correlation creates a headwind for the broader bond market.

BND−0.30

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In context

The fund's relative underperformance compared to emerging market debt, coupled with the risk that rising government debt issuance will push interest rates higher, pressures the price of U.S. aggregate bonds.

Read from the article alone

• BND
• VWOB
• asset allocation
• bonds
• correlation
• emerging markets
• etfs
• fixed income
• government debt
• interest rates

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