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

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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?

Discussion (3)

What are your thoughts?

Duane Cheng

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.​​​

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