BNDX etf? ｅＭＡＸＩＳ Ｓｌｉｍ 先進国債券インデックス fund? or NF・外国債ヘッジ有ETF?

[ChapInTokyo]

I'm thinking of selling my Vanguard Total International Bond Index Fund ETF (ER 0.07%) and buying either the 'ＮＥＸＴ ＦＵＮＤＳ 外国債券・ＦＴＳＥ世界国債インデックス（除く日本・為替ヘッジあり）連動型上場投信' etf (ER 0.132%) or the the 'ｅＭＡＸＩＳ Ｓｌｉｍ 先進国債券インデックス' fund (ER 0.17%) because the Vanguard ETF is usd hedged, whereas the NEXT FUNDS ETF is yen hedged, and the eMAXIS mutual fund is unhedged.

In terms of recent returns, the Vanguard had a dividend yield of 4.665% over the past year but it's market price fell 9.37% over the year in USD terms (but increased by 3.96% or so in Yen terms), the NEXT FUNDS ETF had a dividend yield of 2.32% but its market price fell 7.32% over the year, and eMAXIS's non-distributing developed market bond index fund increased its base price by 14.46%.

I suppose a lot of the difference in performance came from the fact that the NEXT FUNDS etf and the eMAXIS fund excluded Japan and included US in their indexes, whereas the Vanguard etf excluded US but included Japan. The fact that the Vanguard was USD hedged, the NEXT FUNDS JPY hedged and the eMAXIS unhedged probably also affected the outcomes in the past year with the yen weakening against both the dollar and the euro.

What are you people on this board using for your international bonds exposure?

[ToushiTime]

I use the eMAXIS Slim one you mentioned.
You might find this interesting: https://www.retirejapan.com/forum/viewt ... 854#p38854

[Tkydon]

As Interest rates go up, existing bond prices go down.
As Interest rates go down, existing bond prices go up.

If a fund has a Forex Hedge it will (attempt to) lock the exchange rate between the currency the fund is denominated in and the currency of the underlying assets purchased by the fund at the exchange rate on the day of purchase, so that the performance of the hedged fund depends (almost) entirely on the performance of the underlying asset in its native currency, and any performance (up or down) attributable to the exchange rate will be (mostly) eliminated.

If your base currency is Yen, and you believe the Yen will strengthen, then a Hedged Fund would be a good choice.
If your base currency is Yen, and you believe the Yen will weaken, then an Unhedged Fund would be a good choice.

If your base currency is USD, and you believe the Yen will strengthen, then an Unhedged Fund would be a good choice.
If your base currency is USD, and you believe the Yen will weaken, then a Hedged Fund would be a good choice.

If you believe Interest rates will go up, then expect the face value of the bonds you have to go down, as you would have to provide a higher yield to the buyer if you sold.
If you believe Interest rates will go down, then expect the face value of the bonds you have to go up, as you would only need to provide a lower yield to the buyer.if you sold.
Of course, you will receive 100% of the face value of the bond if you hold it to maturity.

[ChapInTokyo]

I use the eMAXIS Slim one you mentioned.
You might find this interesting: https://www.retirejapan.com/forum/viewt ... 854#p38854

This was really interesting. Thank you. I think that I would much rather have less volatility than potential high returns over the long term once I am retired. The eMAXIS Slim one seems to be the one to use, seeing as it is currency hedged.

[captainspoke]

I suppose one of these days, bonds will finally have a good year.

Relieving the pressure off the bond aficionados, and the "I told you so" bond folks will finally be smiling, a little bit.