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Vanguard To Launch International Bond Index Fund And ETF
Reply to @Investor: That should help to diversify bond allocation in these Target Date funds. Lowers volatility should be expected from the dollar-hedged. Also the ER ratios are very low comparing to actively managed developed market bond funds.
Reply to @Sven: Two other change I note is that they decided to switch to low duration TIPS index fund from actively managed intermediate term one and they are dumping money market fund and allocate that portion to other bonds.
It is good to see Vanguard is improving their target dated funds. On a different note, I look forward that Vanguard will introduce the emerging-markets government-bond index fund in the near future.
Matthews Asia Strategic Income, MAINX, which is quite compelling. However, its ER is higher than their equity funds.
I think that is because of the assets gathered so far. Any fund in its incipient stage will change a very high fee unless the mgr is like Andre Foster of SFGIX, who reduced its expense ratio to a very competent level considering the economy of scale.
I think MAINX would reduce its cost as they accumulate assets. I hope it succeeds and consequently gather enough assets to reduce the exp ratio.
Comments
Here is the M* article on this:
http://news.morningstar.com/articlenet/article.aspx?id=583860
Matthews Asia Strategic Income, MAINX, which is quite compelling. However, its ER is higher than their equity funds.
I think MAINX would reduce its cost as they accumulate assets. I hope it succeeds and consequently gather enough assets to reduce the exp ratio.