It would be good to have some UK long term bond funds or etfs on here(15 years +)…
Vanguard UK long duration gilt index or similar UK ETF.
I can only find short-medium for UK or £ hedged US long term.
Trying to make up a Ray Dalio style ‘all weather’/‘all season’ type portfolio with a Uk bias on bonds and some shares and see how it fairs.
For anyone who is not familiar its basically a portfolio supposedly designed to balance risk and provide modest growth during any of the simplified 4 main cyclic economic conditions (inflationary, deflationary, economic growth and declining economic growth).
Its a mad mix of:
30% equity
15% intermediate bonds
40% long duration bonds
7.5% commodities
7.5% gold
Its performed pretty well throughout 2001 / 2008/ 2020 etc (avg 6% so slightly below avg s & p but with really low volatility) so I’m keen to try it without the US risk by using UK long duration GILT fund. I think UK bond market although not great is looking better than the US situation atm.
I know its not the most popular theory as it doesnt go all out on growth stocks and market beating… but not everyone wants that and judging by the current gold and commodities valuation I would say its on track to continue working even with current low bond yields.
The long durarion bond prices fluctuate more than shorter term as the yield curve changes which is how they can still hedge stocks in certain market conditions alongside the commodities rather than relying on the dividend yield alone for this large proportion of bonds in the portfolio.
I would recommend watching this video if anyone wants to learn more!
And or read his latest book as its quite relevant: