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Anonymous

09 Mar 2020

General Investing

Question about bond ETFs?

I was thinking of reducing my portfolio's risk by purchasing some bonds but I'm not sure what to buy. Can I consider diversifying into the Nikko AM SGD Bond ETF even though it's a fund?

What are the risks of holding a bond ETF instead of an actual bond?

Discussion (4)

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Nikko AM SGD Investment Grade Corporate Bond ETF (MBH) is sensible for diversification. The yield is decent and it gives you access to bonds belonging to some of the good companies which retail investors might not have access to. At an average credit rating of AA, I believe it's a good investment product to consider.

When Your answer is triggered by the recent Corona 'crash', maybe your portfolio doesn't need a change, but just keeping cool. Traditional wisdom still recommends diversifying into bonds (or bond ETFs today).

I am no expert on bond investing, my portfolio doesn't include bonds. There are discussions of an imminent corporate bond bubble, but who knows.

When I would be pressured to invest (partially) into a bond ETF, I would choose that with the following criteria: well diversified, high area under management, lowest TER (annual fees) possible, trustful ETF company, good track record.

With www.etf.com or www.justetf.com stockscreener I would possibly identify then the following as possible options:

Vanguard Total World Bond ETF (BNDW)

Vanguard Total Bond Market ETF (BND)

iShares Core Global Aggregate Bond UCITS ETF USD Dist (tickers: AGGG, EUNU, SAGG)​​​

Hariz Arthur Maloy

21 Mar 2019

Independent Financial Advisor at Promiseland Independent

I'd suggest you to look at actively managed bond funds instead of passive bond etfs.

You can hold...

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