Investment: How ETF investors benefit from high returns on corporate bonds
Bond ETFs with a fixed term are becoming increasingly popular. They allow private investors to buy corporate bonds and calculate their yields at least roughly.
Several companies, including Booking.com, Barclays, and Linde, are issuing Euro bonds with high interest rates, but these are typically only available to institutional investors with minimum investments of 100,000 euros. Private investors can buy bond ETFs, but the returns work differently and require the bond prices to rise or not fall too much.
However, some bond ETFs with fixed end dates have been available for over three years, allowing a buy-and-hold strategy. Blackrock's iShares has seen over 15 billion euros invested in these ETFs, which are popular with both private and institutional investors.
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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