facebookI'm considering ABF Singapore Bond ETF after reading this article by Dr Wealth. Do hope to seek some point of view for consideration before taking action. Appreciate some suggestions too. ? - Seedly

Chris Chin

Senior Supply Chain at Mnc

18 Apr 2019

βˆ™

General Investing

I'm considering ABF Singapore Bond ETF after reading this article by Dr Wealth. Do hope to seek some point of view for consideration before taking action. Appreciate some suggestions too. ?

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Luke Ho

15 Jun 2018

Founder and Director at CFX Money Maverick Pte Ltd

For the reasons that index investing is encouraged in large-cap, fairly-efficient markets, it serves opposite for fixed income. Bond ETFs are low cost and generally stable, but you can and should purchase bond funds that consistently beat these ETFs/indexes. FInding a fund that can do this is I daresay, extremely easy compared to finding a US Fund that can beat the benchmark of the SnP500, for example.

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Based on historical performance, you typically expect Bonds to perform at 2 - 4% annualized. You should up your expectations net of fees and consider active bond funds, which are more likely to perform at least from 4 - 6% net of fees with potentially higher Sharpe ratios.

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