Questions tagged [bond-etf]
Bond ETFs are exchange-traded funds that invest mainly in bonds.
62
questions
13
votes
4
answers
3k
views
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 ...
0
votes
1
answer
52
views
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 ...
- 509
1
vote
1
answer
206
views
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 ...
- 509
2
votes
1
answer
52
views
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 ...
- 509
2
votes
2
answers
440
views
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% (...
- 289
5
votes
1
answer
992
views
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 ...
- 165
0
votes
1
answer
89
views
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 ...
- 595
24
votes
3
answers
6k
views
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 ...
- 491
0
votes
1
answer
86
views
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 ...
- 509
0
votes
1
answer
71
views
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 ...
- 509
-1
votes
2
answers
103
views
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://...
- 298
0
votes
0
answers
62
views
CDs Credit Deposit in Europe?
i am getting interested to Credit Deposit CD as i think are very low risk and give you an distribution for every maturity that can be also 3 months.
I am looking at CDs because are very liquid , ...
- 75
1
vote
0
answers
69
views
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 ...
- 33
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-...
- 695
1
vote
1
answer
88
views
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 ...
- 113
1
vote
2
answers
253
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 ...
- 227
0
votes
1
answer
40
views
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, ...
- 501
2
votes
1
answer
82
views
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 ...
- 501
1
vote
3
answers
183
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 ...
- 113
1
vote
1
answer
96
views
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?
- 75
6
votes
3
answers
2k
views
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 ...
- 16.9k
1
vote
1
answer
171
views
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 ...
- 16.9k
3
votes
1
answer
150
views
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) ...
- 824
4
votes
4
answers
1k
views
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 ...
- 16.9k
0
votes
0
answers
108
views
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 ...
- 16.9k
0
votes
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 ...
- 33
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?
- 133
0
votes
1
answer
103
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 ...
- 103
0
votes
2
answers
415
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 (...
- 16.9k
0
votes
2
answers
75
views
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 ...
- 16.9k
2
votes
1
answer
84
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 ...
- 16.9k
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-...
- 459
1
vote
0
answers
163
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:
------------...
- 11.2k
1
vote
1
answer
473
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 ...
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:
...
- 873
2
votes
1
answer
149
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, ...
user10763
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 ...
- 8,456
0
votes
1
answer
52
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 ...
- 253
0
votes
1
answer
118
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 ...
- 1,085
1
vote
1
answer
91
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 ...
- 1,085
3
votes
3
answers
377
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 ...
- 298
0
votes
2
answers
191
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, ...
- 103
3
votes
2
answers
363
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 ...
- 7,506
1
vote
1
answer
334
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 ...
- 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 ...
- 337
2
votes
1
answer
83
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 ...
- 50.6k
1
vote
1
answer
183
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 ...
- 201
1
vote
0
answers
538
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 ...
- 135
2
votes
1
answer
155
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,...
- 151
6
votes
1
answer
326
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 ...
- 2,177