(ETF Discussion) SGX: NikkoAM SGD IGBond ETF (SGX: A35)?

It is cheap, large and stable in the past.

so it does what it is supposed to do as portfolio diversity allocation.

remains the vague risk of a (predominantly corporate) bond crisis with total defaults.

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The Nikko AM SGD Investment Grade Corporate Bond ETF (the “Fund”) is the first to offer investors easy access to Singapore Dollar-denominated, investment grade corporate bonds in affordable units. The Fund aims to replicate the performance of the iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index (the "Index"), allowing investors to diversify their portfolios with corporate bonds from high quality issuers.

Fund Details

Inception Date: 27 August 2018

Fund Size: S$580.64 million (as of 29 September 2020)

Expense Ratio: 0.27% p.a.

Distribution Frequency: Annually

Base currency: SGD

1-Year Annualised Tracking Error: 0.42%

Performance (%)

Fund Holdings

Sector Allocation

Who is this fund for

• Investors looking to gain exposure to a diversified portfolio of quasi-sovereign, Singapore and foreign corporate bonds.

• Investors who want to invest in an ETF with corporate bond holdings that are of investment grade rating. Investment grade rating shows that the bond has a relatively low risk of default.

• Investors who don’t have time or resources to perform individual stock picking or company research.

With investment grade bonds with a rating of AAA to BBB from issuers such as HDB, Temasek Financial, UOB, LTA and SIA, this ETF has relatively low risks and serves as a great addition to a diversified multi-asset portfolio.

The information above is referenced from the Nikko AM SGD Investment Grade Corporate Bond ETF factsheet.​​​