there. The two instruments you are looking at are at the safer end of the spectrum for investments. They are great picks for diversifying your investments in stocks and other more volatile instruments. Let me first address the two metrics that you have raised 1. Capital protection SSBs are very safe as they are fully backed by the Singapore government. The ABF Bond ETF, while consisting of mostly AAA rated singapore government bonds, is still less secure as there are also lower rated bonds 2. Returns SSB has lower returns with the highest in recent times being the July 18 tranche with a 2.63% return over 10 years. In comparison ABF Bond ETF has traditionally achieved returns of up to 3.6%. Personally when I consider guaranteed returns, I usually think CPF. Even OA already nets you 2.5%, not to mention the first 20k or even SA. But if you have a shorter investment horizon, that's the spot that SSB can fill. Your short term guaranteed returns investment. Or you can use it as your emergency savings stockpile given that it is relatively liquid; you can redeem it within a month with a nominal fee of just $2. As for ABF, it serves as a step down from SSB in capital protection, with the tradeoff being higher returns. This helps to further diversity your investments. Besides, bonds conventionally move in the opposite direction of equities, and can help you psychologically when there's a downturn. ABF tends to be a long term investment though, because it takes time for average returns to rise to a meaningful level. Hope this helps!