absolutezero wrote:richfool wrote:absolutezero wrote:VWRL pays 1.42%
I'm a little puzzled by the obsession with dividends over total return.
You could have had 90% TR in VWRL vs significaly less in any of these ITs (even with dividend)
If a share of value 100p pays out 5p of dividend then the share price drops by 5p on xd day (subject to market movements too) but you still have 100p. It's just 95p of share and 5p of dividend.
You might as well just sell 5% of your shares.
I do appreciate and am in-tune with TR, and generally I invest with that in mind, but in the case of these bond/debt/fixed interest investments I was researching/seeking diversity and particularly
risk mitigation (in the event of a fall in equities). I.e. something that might have an inverse relationship with equities. Though currently I am sceptical that if, for example, tapering got under way and/or interest rates rose, that bonds may well fall, as well as equities.
How about a gold or commodities ETF?
Yep, got some of both. Gold through POLYmetal, oh and PNL (Personal Assets trust), and commodities through (here we go again, those pesky names): BRWM- Blackrock Mining, BERI (Blackrock Energy & Resources trust and CYN - CQS Natural Resources trust.
But, it was bonds I was asking about, as a possible risk mitigator and particularly if they have an inverse relationship with
equities in the event of a market crash.
That said, I don't hold any bonds currently, other than where they may be held within another IT, such as MATE (JP Morgan Multi Asset trust), as I am not sure whether they will do that job, or whether I would be facing a fall in their SP's if tapering started or interest rates rose.