Investment: How ETF investors benefit from high returns on corporate bonds
Fixed-term bond ETFs are becoming increasingly popular. They allow private investors to buy corporate bonds and calculate their yields at least approximately.
Several companies, including Booking.com, Barclays, and Linde, have recently issued Euro bonds with high interest rates. These bonds, with terms of 5-7 years, offer yields of over 4%, but are typically only available to institutional investors with minimum investments of €100,000. However, investors can also buy bond ETFs, which have become increasingly popular, with over €15 billion invested in iShares' Euro bond ETFs.
A new type of bond ETF, known as a "maturity ETF," has a fixed end date and allows investors to hold bonds until maturity, providing a predictable return. These ETFs track indices constructed by MSCI and Bloomberg, and their portfolios are updated monthly to reflect changes in the underlying bonds.
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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