Phil Bradford (Inland Empire, CA) wrote 14 hours ago:I replied to Phil's post:
The total bond ETF by Vanguard, symbol BND, has been discussed for a simplified fixed income allocation. For the life of me, I can not find out its duration. Can someone tell me what the duration of this bond ETF is?
Thanks.
How to subscribe to Kirk Lindstrom's Investment Newsletter: http://home.netcom.com/~kirklindstrom/Newsletter/Subscribe.htmlYou replied to Phil's post 12 hours ago
- BND: Fundamental Data As of 6/30/2007
- Average Weighted Maturity (years) 7.30
- Average Coupon 5.50%
- Average Duration (years) 4.70
- Memorize "etfconnect" as in http://www.etfconnect.com/select/fundpages/fixed_etf.asp?MFID=176476
and
beware of Premium/Discount = 0.33%
Phil Bradford (Inland Empire, CA) replied to your post 5 minutes ago:
As usual you rock!
Thanks.
Phil
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3 comments:
Kirk,
What is the formula for calculating duration? It uses all of your factors but I don't know the formula.
You need a computer as the result is an composite of every individual bond in your portfolio. You can get the formulas to do it here.
More on what duration is and formulas for duration here.
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