fyi - analysis of BOND funds holdings as of 2011-03-31: TLT, EDV, VUSTX, VGLT

Discussion of the Bond portion of the Permanent Portfolio

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cabronjames

fyi - analysis of BOND funds holdings as of 2011-03-31: TLT, EDV, VUSTX, VGLT

Post by cabronjames » Sun Jun 26, 2011 10:31 pm

Reading WildAboutHarry's post http://gyroscopicinvesting.com/forum/in ... pic=1078.0 , sparked my curiosity on what portion of BOND funds actually hold US Treasuries, vs bonds from other issuers such as Freddie Mac, Tennessee Valley Authority, etc.

In addition to the percentage that were issued by the US Treasury by bond value on 2011-03-31.

I also checked the percentage issued by the US Treasury, with maturity at least 20 years away (maturity date 2031-03-31 or later).

Results overview:
Fund, Pct_UST, Pct_UST_20yr+

TLT, 99.0%, 99.0%
EDV, 100.0%, 100.0%
VGLT, 92.6%, 57.0%
VUSTX, 85.7%, 40.3%

Here's my spreadsheet with the holding details http://www.multiupload.com/KC5XYZBHH5

My conclusion:
For US non-Vanguard custodian clients, use TLT.  

As a US Vanguard VBS client in a tax-sheltered IRA, it's beneficial for me to use EDV for the free trading commission, & free automatic fractional dividend reinvest.

I conclude for myself holding exclusively EDV for the BOND allocation, but in 2/3 relation to the other assets (STOCK, etc) as described in this old post http://gyroscopicinvesting.com/forum/in ... opic=824.0 ,
is likely superior to
mixing EDV with VGLT or VUSTX that have some non-US Treasury "junk"
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