Advertisement

Junghwa Huh

25 Aug 2020

∙

General Investing

In this near-zero interest rate environment, does A35 etf ( ABF bond ETF) have any room left to go up?

Many people say that bond has only way to go down unless the interest rate will go below zero. US FED keeps telling they don't have any plan to bring the minus interest rate.

I am curious how our government bond dominated bond ETF(A35) will be. it has returned a splendid performance this year but is it ok to enter at this point?

3

Discussion (3)

What are your thoughts?

Learn how to style your text

Duane Cheng

25 Aug 2020

Financial Consultant at Prudential Assurance Company Singapore

Hi there,

Historically, when interest rates fall, bond prices go up. With current near zero interest rates, it would be hardpressed to find any further upward shifts in bond pricing. Entering at this point would mean entering in at a high.

We are a very conservative country, and most of the funds might have gone to our government bonds during this period of volatility. Technically risk-free, as it is backed by Singapore. Inadvertently the price would rise as well.

Hope i was able to shed insight!

*This does not consitute as investment advice. Please do your own due diligence when executing invesment decisions.

Reply

Save

View 2 replies

Write your thoughts

Related Posts

Learnt that the Chinese Govt Bond Index ETF has high yields, investment-grade rating, low-interest rate risk, a stable RMB and cheap valuations. A clear sign to go ahead with this ETF?

[Endowus AMA] Hi Sam, The interest rate is zero or negative in the US and Europe. How come bonds can provide a positive return in foreseeable when interest can only go higher? Should we just be 100% equity now?

What are the interest rates of return for Nikko AM STI ETF and ABF Singapore bond index fund respectively?

How do your bonds typically fare during the transition from low interest rate environment to a high interest rate environment?

Hi all, I am looking at the ABF SG Bond ETF (A35). From what I know, a bond etf gives returns through dividends, is this true? What about capital gains since the bond price has been fluctuating as well?

Related Posts

Learnt that the Chinese Govt Bond Index ETF has high yields, investment-grade rating, low-interest rate risk, a stable RMB and cheap valuations. A clear sign to go ahead with this ETF?

[Endowus AMA] Hi Sam, The interest rate is zero or negative in the US and Europe. How come bonds can provide a positive return in foreseeable when interest can only go higher? Should we just be 100% equity now?

What are the interest rates of return for Nikko AM STI ETF and ABF Singapore bond index fund respectively?

How do your bonds typically fare during the transition from low interest rate environment to a high interest rate environment?

Hi all, I am looking at the ABF SG Bond ETF (A35). From what I know, a bond etf gives returns through dividends, is this true? What about capital gains since the bond price has been fluctuating as well?

Advertisement