Hariseldon58 wrote:GeoffF100 wrote:I had a look at Vanguard Global Bond Fund (hedged into GBP) vs VGOV on Morningstar. (VAGP is cheaper than the Vanguard Global Bond Fund, but does not have as long a history.) VGOV has been trounced. I am feeling more inclined to buy VAGP (or its accumulating version VAGS) than VGOV in my ISA and SIPP. I am already buying low coupon gilts outside my tax shelters. They have a better tax treatment and no ongoing charges.
Worth considering these had different durations and the recent bond market crash due to rising interest rates effected VGOV far more due to its longer duration. VGOV has a duration around 9.3 years at present but a couple years back it was around 12.
The rising interest rates reduce the duration of a bond portfolio even if the average maturity remains the same.
Yes, as I have said, I believe that was the main factor there. VAGP still has the shorter duration. That will not help if interest rates fall, however.