ETF Securities has given investors more options for investing in the fixed income market, with the launch of a US Treasury Bond exchange traded fund (ETF) and a USD high-yield corporate bond fund.
The new funds were ETFS US Treasury Bond (Currency Hedged) ETF and ETFS USD High Yield Bond (Currency Hedged) ETF.
The ETFS US Treasury Bond (Currency Hedged) ETF was the first pure play exposure to US Treasuries available to Australian retail investors.
ETF Securities head of product, Evan Metcalf, said: “Fixed income securities play an important role in investment portfolios. Their returns generally have a low correlation to equity returns, which provides portfolio diversification.
“And over time, they have low volatility. This means they provide yield with relatively low risk. Investors often compare the yield on government bonds to the higher yield on dividends from equities. What they ignore is that to capture that dividend yield they must invest in an asset class with double-digit annual volatility.”
“These investment options are perfect for investors like retirees or SMSFs who are seeking peace of mind, and low risk asset classes.”
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