Questions tagged [bond-etf]

Bond ETFs are exchange-traded funds that invest mainly in bonds.

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27 views

How does Bloomberg Barclays US Aggregate Bond compare to ICE US Treasury Core Bond?

I'm looking at two US aggregate bonds trying to understand why one is more popular than the other. iShares US Aggregate Bond UCITS ETF - 0.25% TER - Bloomberg Barclays iShares US Treasury Bond UCITS ...
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70 views

Why did bond prices temporarily dip in March 2020?

I was looking at the historical prices of iShares Core U.S. Aggregate Bond ETF (AGG), and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP): What explains the sudden dip in bond prices (...
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What happens to a target-maturity corporate bond ETF if one of the companies collapses?

Consider a target-maturity corporate bond ETF such as the iShares iBonds Dec 2020 Term Corporate ETF (NYSE Arca: IBDL). The yield-to-maturity of the ETF is approximately 1%. The fund holds 250+ bonds ...
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Are there any target-maturity TIPS ETFs?

Are there any target-maturity bond ETFs that mostly hold Treasury Inflation-Protected Securities (TIPS) in their portfolios? I know that target-maturity treasury bond ETFs exist, but what about target-...
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38 views

Advantages of target-maturity treasury bond ETFs vs. buying treasury bonds outright?

Consider a target-maturity bond ETF that holds only treasury bonds: iShares iBonds Dec 2029 Term Treasury ETF (NASDAQ: IBTJ). It has an expense ratio of 0.07% on already-low treasury bond yields. What ...
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What is the appeal of this Ultrashort Bond ETF with 3B net assets but no returns nor dividends?

For diversifying risk in my personal depot I came across advice for this bond ETF: iShares € Ultrashort Bond UCITS ETF (https://www.ishares.com/ch/institutional/en/products/258114/ishares-euro-...
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Why do some monthly bond ETFs have no dividend in January?

For example, the following bond ETFs have monthly dividends except in January: 1) https://www.nasdaq.com/market-activity/funds-and-etfs/vteb/dividend-history: ------------...
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325 views

Are there Bond ETF’s that don’t go down? [duplicate]

I would like to put some percentage of my money in an investment that only goes up, even if it goes up only by a small amount. One way to do this would be to put my money in a bank account, but I’d ...
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1k views

Tax in Germany on ETF, government bonds, stocks

I've heard Germany tax rate on ETF capital gains and dividends is Kapitalertragsteuer + Solidaritätszuschlag = 26.375% (assuming you don't want to pay church tax also) Is this tax rate the same on: ...
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Why oughtn't corporate bond ETFs (with credit rating ≥ BBB) replace government bond ETFs?

Please see the question in the title. Consider merely Corporate Bond ETFs trading in Canada with a minimum credit rating of BBB. My daredevil grandma in Toronto bought 70% equity and 30% bond ETFs, ...
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Are bond index funds a safe way to save for a mortgage down payment?

I came across Betterment's "Smart Saver" account today, which is a savings-account alternative that invests in U.S. Treasury bonds and low-volatility corporate bonds. The APY is almost exactly the ...
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45 views

Shortcut for calculating interest rate risk

Is there a rule of thumb to calculating the inverse relation between a bond’s price (or any fixed income payout) and its interest rate? I’m actually more interested in bond ETFs, so something along ...
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82 views

Short duration corporate bond ETF

I am considering a short duration corporate bond ETF to get some interest on my money which is starting pile on on my zero interest account. I am however concerned about the fact that we have had low ...
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1answer
66 views

Characterising risks of an corporate/goverment bond ETF's

I have been looking at different conservative investment strategies such as 50/50 "interest fund", "global stock fund" and "the permanent portfolio". As an alternative, I was looking for corporate ...
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301 views

Understanding bond ETFs

I am failing to understand the bond ETFs. I somewhat understand stock ETFs: ETFs own stocks, I buy a part of ETF, therefore, I also indirectly own stocks. When I sell my share of ETF, the ETF gets ...
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how to estimate bond ETF price once interest rate changes?

I'm looking at an example bond ETF which track bonds that expire on 2027 which means its for almost 10 years to its intermediate-term bond tracking. I understand that if interest rate would go up, ...
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265 views

Criteria for selecting Bond ETFs

My investments are split between 4 ETFs (US, International, REIT, and bonds). Until recently, bonds were a relatively small part of the portfolio so I didn't put much thought into it and selected a ...
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234 views

Bond ETF's: why isn't the nominal value of the underlying asset mentioned anywhere?

I am wondering why you never see the (weighted) nominal value of the underlying assets of a bond ETF mentioned anywhere. It seems to me this information is needed to determine whether a bond ETF is ...
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976 views

When are short-term US Treasury funds (ETF or mutual) a good investment?

I want to understand the rationale behind buying into a short-term Treasury ETF (or mutual fund). In particular, I want to understand how it compares to buying short-term Treasury bonds/bills directly ...
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1answer
43 views

How is P/E ratio of a bond fund calculated?

According to the Google search of NYSEARCA: HYG, that fund has a P/E ratio of 20.89. Which makes no sense, since bonds have yields (this one currently returns 5.04%), not earnings. So, what does ...
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151 views

When are bond ETF dividends taxed?

From what I've read, the dividends of bond ETFs (like HYG or JNK) are taxed at the ordinary income tax rate (up to 39.6%). Is this tax withheld before the dividend is paid out to the investor? Or is ...
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495 views

Where can I find the European equivalent ETFs from a USD superdiversified 10 ETFs portfolio

I have been using this superdiversified 10 ETFs portfolio. To lower the risk it's composed from stocks and bonds across the globe and includes some commodities. Being in USD currency and the Euro ...
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1answer
122 views

What determines the price of fixed income ETFs?

I am curious about what determines the value of fixed income ETFs? Is it the prices of bonds? The yields of bonds? Or the coupon of bonds? I know that prices and yields move in inverse directions. So,...
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238 views

Does buying bonds individually offer an advantage over bond funds/ETFs in a low interest rate environment because bonds can be held to maturity?

I have heard this argument several times. Today's low-interest rate environment makes it risky to own bond funds/ETF. Investors will be seriously injured when interest rates start rising ...
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44 views

Any extra fees charged by passive stock and bond ETFs on top of the standard fees?

Passive stock and bond ETFs charge a management fee which is quoted on their website. Are there hidden charges on top of this standard management fee that is not transparent? For example, are ...
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47 views

Which field should I use for getting the income yield of this bond ETF?

I am looking at "iShares Global Corp Bond UCITS ETF" listed on the London Stock Exchange. On the website for this bond ETF, there are fields like; "distribution yield" "flat yield" "Weighted Avg ...
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3k views

What does DIST refer to in this equity ETF?

I am looking at this bond ETF "iShares MSCI Japan UCITS ETF USD (Dist)" which is listed on the London stock exchange. What does DIST refer to in this equity ETF? I cannot find the answer from the ...
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220 views

Bond ETFs as a means to achieve risk parity

Background One of the investors that I really look up to is Ray Dalio. He has stated that a 50/50 stock to bonds allocation does not achieve risk parity because 80% of your risk is still in your ...
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124 views

Money-market or cash-type ETFs for foreigners with U.S brokerage account

Non-US investors who have cash in their U.S brokerage accounts, say Interactive Brokers, will be subjected to U.S estate tax. What are some securities, ETFs that are close to cash that these foreign ...
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479 views

Pros and cons of bond ETF versus traditional bond mutual fund?

Bond ETFs are easily available on stock exchanges today. Bond mutual funds have been around for a long time. I am not sure which to buy to build an income stream as a fixed-income investor. What are ...
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394 views

Do buyers of bond ETFs need to pay for accrued interest?

When buying normal bonds, the buyer needs to take note of accrued interest. He should take note whether the price quoted is a clean (excludes accrued interest) or dirty price (includes accrued ...
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172 views

Does an owner of a bond etf get an income even if he sells before the day of distribution?

Suppose an investor owns a bond ETF for 1 month and sells without waiting for the date of income distribution, will he still get paid an income for owning the bond ETF for 1 month? This does not work ...
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386 views

How much do laddered bond ETFs differ from bond ETFs that bound maturity?

Abbreviate LD BETF as laddered bond ETFs. 'BETFs that bound maturity' are UNladdered but impose a maximum limit on maturity of bonds, which I denote Bound BETF, and abbreviate as BD BETF. This ...
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In Canada, why have inflation-protected bond ETFs underperformed short-term federal government bond ETFs?

I know that interest rates negatively correlate with bond yields-to-maturity, but does the lowness of interest rates (for the past several years) fully explain the underperformance of the inflation-...
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6k views

Best way to invest in safe USD bonds for non-US citizens?

I'm a European resident (non U.S. Citizen), I receive my salary in USD. I have opened a USD account at my local bank to avoid exchange fees. I'm having difficulties in finding a decent way to invest ...
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How do you short US Treasuries?

As the US government continues to issue record levels of debt, I don't think it can continue to sell that debt at 2 - 3% interest. It will face the simple supply/demand law of economics — the more ...