What are your thoughts on Nikko AM Investment Grade Corporate Bonds fund?

What do you think of this bond ETF?

Do you find this investment risky as compared to STI ETFs?

There is sales brokerage fees, management fee and trustee fee for this. Are there any other hidden fees?

Discussion (2)

What are your thoughts?

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Wei Chin

29 Nov 2019

Personally I think this is a good instrument for investors to diversify into average A-(investment) grade bond denominated in SGD.

Bond ETFs are generally less volatile than Equities ETFs and has a low correlation. That is why it is a good tool for diversification.

There are other bond ETFs available on SGX too.

https://api2.sgx.com/sites/default/files/2019-0...

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Elijah Lee

02 Nov 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

This is an ETF that consists of SG corporates. With the components of the ETF being fixed income, the risk level is definitely lower than the STI ETF. There is still a risk, but lesser than an equity-based ETF.

Other than the fees you mentioned, there shouldn't be any further fees to buy this. But take note, the management and trustee fee is already priced in, so it is not a 'fee' that you pay directly. The brokerage is the only direct cost to you.

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