Investment: Passive Income with Bonds: These ETFs Will Give You Interest Eight Times a Year
From the Handelsblatt archive: With term funds from two providers, investors can put together a bond portfolio with regular income. Price fluctuations hardly play a role.
Experts such as Olaf Stotz, Professor for Asset Management at Frankfurt School, recommend investing in bond funds with a fixed maturity date for a passive income, as opposed to traditional bond funds. These funds, also known as target maturity ETFs, work similarly to individual bonds, with investors receiving interest payments and their principal back at the end of the term.
Providers such as iShares from Blackrock and Xtrackers from DWS offer these ETFs, which track indices of corporate bonds with good credit ratings and sustainable criteria. By combining these funds, investors can receive quarterly interest payments, with expected annual yields ranging from 3.7% to over 4.5%, depending on the maturity date.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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- Investing: How to create an ETF portfolio that requires little work handelsblatt.com
