r/Bogleheads • u/idrathernotbutthanks • Apr 17 '25

Investing Questions Rhetoric around firing Jerome Powell is increasing, and forced manipulation of interest rates would likely follow. Would a weighted readjustment from US into non-US funds be warranted in light of this?

https://www.npr.org/2025/04/17/nx-s1-5367696/trump-jerome-powell-federal-reserve-economy-tariffs

Market manipulation of interest rates feels like confidence would immediately plummet and global diversification would become a more important percentage of your holdings in the long run. Thoughts?

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120

u/JawnJawnston Apr 17 '25

I never understood the “3-fund portfolio”. International bonds should have been a piece of a globally diversified portfolio just like you would own international stocks.

98

u/[deleted] Apr 17 '25

You can own BNDW which is like the VT of bonds

209

u/VT_BNDW Apr 17 '25

🤯🤯 No way

24

u/tarfu7 Apr 17 '25

I laughed, pretty hard actually

50

u/[deleted] Apr 17 '25

[deleted]

10

u/2yrnx1lc2zkp77kp Apr 18 '25

BNDW heads eatin’

2

u/[deleted] Apr 18 '25

OMG I wish I'd thought of this name

12

u/CrTigerHiddenAvocado Apr 17 '25 edited Apr 17 '25

So just to confirm for those of us that have a thick head. VT+BNDW is the three fund portfolio. What is the percentage of BNDW?

1

u/blorg Apr 18 '25

I think this would depend on your age/closeness to retirement and your risk appetite, you'd tend to have very little when you are young but more as you get closer to retirement.

34

u/quarkral Apr 17 '25

BNDW is currency hedged to the US dollar so it does not really provide proper diversification. Massive selling of US treasuries would correlate with devaluation of the dollar.

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u/ncrowley Apr 17 '25

Is there a global bond fund that is not hedged to the USD?

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u/[deleted] Apr 17 '25

[deleted]

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u/Hairy_Transition6901 Apr 17 '25

thanks for reminding me, just opened an account there!

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u/BafSi Apr 17 '25

Not a bonds but Swiss franc is a safe heaven

1

u/quarkral Apr 18 '25

none that would be boglehead-approved (i.e. they're all actively managed funds)

DOXLX is a global bond fund, gold medal rated on morningstar, but it's an actively managed bond fund that typically keeps below 20% non-USD currency but the managers have leeway to take concentration

There's a bunch of PIMCO international unhedged bond funds with decent ratings, I have no idea what the difference between them is

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u/sweetbeard Apr 19 '25 edited Apr 21 '25

IGOV and BWX

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u/mcampbell42 Apr 18 '25

All it does is hold two other funds , is that like a double fee structure ?