Questions tagged [bond-etf]

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

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Why doesn't my bond ETF provide a hedge against stock indexes in the way I thought it would?

I own BND in an attempt to hedge my portfolio against my stock ETF declines, based off of the Bogleheads philosophy. I've noticed that with this ETF, over the relative long term, I've made but modest ...
Ken - Enough about Monica's user avatar
0 votes
1 answer
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Bond etf return

When I open any etf pages there are a lot of yields specified. I assume those are some averages of underlying bond yields. I want to know the total return on my money ytd. This consist of 2 parts: one ...
Medan's user avatar
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Putting down payment to work

We have planned to buy a house but with such high rates that did not happen. We would have to wait until rates are lower. I planned to use the down payment money to invest in Ig 3-5y corporate bonds ...
Medan's user avatar
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2 votes
1 answer
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Bond etf with duration range

How do they construct etf with say 2-3y duration. I would understand the idea is to create a basket of bonds with such duration and keep it for 2-3y until they all mature to realize the expected book ...
Medan's user avatar
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2 votes
2 answers
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Bond ETFs: Distribution yield vs YTM

I have a hard time reconciling the distribution yield of a bond ETF and its average yield to maturity. For example, for this ETF the distribution yield is 1.8%, but the average weighted YTM is 4.5% (...
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5 votes
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Questions about bond ETF

What happens when a bond expires? Will the mangers typically buy similar bonds or will they payout the cash (and hence the bond ETF will have a natural expiration)? So the difference between ...
k.dkhk's user avatar
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What does the Bloomberg US Treasury Long Term TR index measure?

I have purchased shares of a bond ETF, ticker symbol: SPTL (SPDR Portfolio Long-Term Treasury ETF). The prospectus states: "the fund's goal is to track the total return of an index that measures ...
domino's user avatar
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24 votes
3 answers
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If US Treasuries at yielding 4-5% right now, why can't I find an ETF that yields that amount?

If US Treasuries at yielding 4-5% right now, why can't I find a 1 month US Bond ETF or 6 month US Bond ETF that yields 4-5%? The best I can find is SGOV but it only yields 2%. Picture of US yields on ...
Katsu's user avatar
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bond etf: stock or bond?

I have a question how bond etf works as I can’t understand all the mechanics. When I buy stock, I bet on its price appreciation. I assume higher volatility as it can go up and down but I am free to ...
Medan's user avatar
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0 votes
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What does a portfolio manager for an ETF do?

When I check a particular fixed income ETF it usually shows me the portfolio managers for it. May I ask what is their role? I think every ETF has a benchmark, say a bond index. Now the fund is ...
Medan's user avatar
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-1 votes
2 answers
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Understanding bond ETF characteristics: Effective Duration and Yield to Maturity?

I'm trying to compare a few (BlackRock) bond ETFs using the following info: Weighted Avg Coupon Effective Duration Weighted Average Yield to Maturity Weighted Average Maturity For example: https://...
Danijel's user avatar
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Should I invest in US bond ETF as a US Non-resident Alien? If so, how should I manage the bond portfolio?

I’m currently investing in US market using IBKR with 70% index ETF (QQQ, VOO, etc.) and 30% bond ETF split (only BND at the moment). I’ve done this for two years I’m aware that a 30% withholding tax ...
Royyyyy1's user avatar
12 votes
3 answers
1k views

Why does the yield on SHY (US treasury bond ETF) seem so bad?

With the US interest rate increasing so much lately, I am interested in putting some more of my money into US treasury bonds. I am looking at the SHY ETF on Fidelity, which is an ETF comprising short-...
Time4Tea's user avatar
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How does the market correct the price of government bonds ETF's? Does it?

A year ago I started to put some of my savings in investments, and to start safely, I bought eurozone government bonds ETF's. One year later, these are down 17%. At first I was astonished how that ...
doetoe's user avatar
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1 vote
2 answers
256 views

Why would an ETF tracking UK government bonds be losing money?

I'm confused by a chart of iShares Core UK Gilts UCITS ETF which is supposed to simply expose the customer to returns from UK bonds. Why does it show negative returns over the last 12 months, unless ...
Sideshow Bob's user avatar
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1 answer
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How to choose between two bond (fixed-income) broad index ETFs in a taxable account?

I want to choose one broad index fixed-income fund ETF for the fixed-income allocation of my portfolio (because I feel one should suffice). I would like to estimate of course, statistically speaking, ...
pf_init_js's user avatar
2 votes
1 answer
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Can we mix different asset allocation funds (funds-of-funds) to obtain a custom percentage mix of equity to fixed-income assets?

Since 2018, Canadians (and Americans) have easy-access to an array of auto-rebalanced asset allocation funds. These "funds of funds" combine equity and fixed-income in different ratios, in ...
pf_init_js's user avatar
1 vote
3 answers
192 views

Why bond ETF price rises over time?

I get that bond price can change depending on the current interest rate (since interest rate of the bond doesn't change). But if this were the only factor, price of the bond ETFs (like BND) would stay ...
maxc137's user avatar
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1 answer
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Vanguard 500 Index Fund ETF, fixed income? [closed]

It seems some ETFs pay dividends other are fixed income. How can I know the one I'm interested in (i.e. Vanguard 500 Index Fund ETF) pays dividends or have fixed incomes?
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3 answers
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Do bond funds have an inherent advantage over individual bonds within a portfolio?

Background: I am constructing a simple ETF portfolio consisting of 70% stocks and 30% bonds. Every three months, I will add money into the portfolio, and rebalance the portfolio to restore its 70/30 ...
Flux's user avatar
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1 vote
1 answer
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How much of a bond ETF's dividends are tax-free for US non-resident aliens?

Normally, for US non-resident aliens, the withholding tax on dividends is 30%. However, dividends that qualify as "portfolio interest" are not taxed (i.e 0% tax). When a US domiciled bond ...
Flux's user avatar
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3 votes
1 answer
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Why short (German) government bond futures?

Today, mainly out of curiosity, I went to a major ETF comparison website and sorted the short ETFs by market value. I was surprised when among the first few places in the list I found an ETF (LYX0FW) ...
B K's user avatar
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Why are bond ETFs typically recommended for diversifying into bonds?

It seems that the conventional wisdom on portfolio allocation suggests that one should include a bond component in one's portfolio. The usual way that people gain exposure to bonds is by buying a bond ...
Flux's user avatar
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0 answers
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Non-resident alien: Why did I pay no tax on dividend income? [duplicate]

I have a US stock brokerage account, and I am a non-resident alien. From my understanding, dividend income of non-resident aliens is taxed at a flat 30% rate (assuming no applicable tax treaties). I ...
Flux's user avatar
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2 answers
110 views

Can I buy some US treasury bills or notes ETFs (3 month to 5 years) with very low risk from the EU?

Can I buy some US treasury bills or notes ETFs (3 month to 5 years) with very low risk from EU (want to buy it in EUR so I don't have to convert it - would this even be a problem?). Because EU bond ...
klemsi123's user avatar
3 votes
1 answer
1k views

If TIPS yields are negative, why do TIPS ETFs have a positive yield?

I've heard that TIPs currently have a negative yield. But the VTIP ETF from Vanguard has a positive yield of about 1.2% right now. Why is that?
John's user avatar
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1 answer
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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 ...
Majid Azimi's user avatar
0 votes
2 answers
427 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 (...
Flux's user avatar
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0 votes
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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 ...
Flux's user avatar
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2 votes
1 answer
88 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 ...
Flux's user avatar
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3 votes
1 answer
123 views

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-...
user640916's user avatar
1 vote
0 answers
215 views

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: ------------...
Franck Dernoncourt's user avatar
1 vote
1 answer
485 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 ...
Keshav Srinivasan's user avatar
3 votes
2 answers
2k 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: ...
Marco Demaio's user avatar
2 votes
1 answer
151 views

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, ...
user avatar
5 votes
4 answers
1k views

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 ...
Nosjack's user avatar
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0 votes
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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 ...
cph2117's user avatar
  • 253
0 votes
1 answer
121 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 ...
user123124's user avatar
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1 vote
1 answer
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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 ...
user123124's user avatar
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3 votes
3 answers
378 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 ...
Danijel's user avatar
  • 298
0 votes
2 answers
202 views

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, ...
Jas's user avatar
  • 103
3 votes
2 answers
365 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 ...
minou's user avatar
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1 vote
1 answer
338 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 ...
Confusion's user avatar
  • 111
5 votes
2 answers
1k 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 ...
Betterthan Kwora's user avatar
2 votes
1 answer
87 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 ...
RonJohn's user avatar
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1 vote
1 answer
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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 ...
trade_the_basis's user avatar
1 vote
0 answers
541 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 ...
OlivierLarue's user avatar
2 votes
1 answer
158 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,...
spindoctor's user avatar
6 votes
1 answer
330 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 ...
curious's user avatar
  • 2,167
0 votes
1 answer
56 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 ...
curious's user avatar
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