Monday, April 5, 2010

sold vanguard total bond fund

5-April-2010

Today I exchanged the approx $77,000 that I had in the Total bond fund (VBMFX) in my personal account into two new bond funds.

VFICX - Intermediate term investment grade bond fund
VWEHX - High Yield Corp bond fund

I did this because I discovered that VBMFX is heavily invested in US Government securities and US mortgage backed securities. I do not want to invest in the US Government and also want to get a higher yield on my money. 40.1% of the VBMFX fund is invested in Treasury/Agency funds and 31.4% is in Government Mortgage-Backed funds. That's almost 72% of the entire fund!!!!

No comments: