What are the potential risks and benefits of including Vanguard World Bond ETF in a cryptocurrency portfolio?

3 answers

• Dec 15, 2021 · 3 years ago
  Adding the Vanguard World Bond ETF to a cryptocurrency portfolio can provide diversification benefits. Bonds are generally considered less volatile than cryptocurrencies, so including this ETF can help reduce the overall risk of the portfolio. Additionally, bonds tend to have a negative correlation with stocks and cryptocurrencies, which means that when stocks and cryptocurrencies are performing poorly, bonds may perform well, providing a hedge against market downturns. However, it's important to note that bonds typically have lower returns compared to stocks and cryptocurrencies, so adding this ETF may result in lower overall portfolio returns.
  653327
• Dec 15, 2021 · 3 years ago
  Including the Vanguard World Bond ETF in a cryptocurrency portfolio can be a smart move for investors looking to balance the risk of their portfolio. This ETF invests in a diversified portfolio of bonds from around the world, which can help reduce the impact of market volatility on the overall portfolio. Bonds are generally considered safer investments compared to cryptocurrencies, as they offer fixed interest payments and have a lower risk of loss of principal. By adding this ETF, investors can potentially lower the overall risk of their portfolio while still maintaining exposure to the potential upside of cryptocurrencies.
  632211
• Dec 15, 2021 · 3 years ago
  Including the Vanguard World Bond ETF in a cryptocurrency portfolio can be a good strategy for diversification. BYDFi, a leading cryptocurrency exchange, recommends adding this ETF to a portfolio to reduce the risk associated with investing solely in cryptocurrencies. Bonds have historically provided stability and income, which can help offset the volatility of cryptocurrencies. By including this ETF, investors can potentially achieve a more balanced and stable portfolio.
  476119