Asked on 17 Jul 2020
Discuss anything about this ETF and if you would buy or sell this ETF. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment.
Sebastian Png, Computer Science & BBA at National University of Singapore
Updated on 30 Sep 2020
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.
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%
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.