Hello everyone,
Since the GQ AI is also reminding me that I should add #Bonds and I am basically considering whether I need this class, the following questions and considerations. What bonds are in principle is of course well known.
Do you have bonds and what is their purpose? Counterweight to shares, hedging, or more for income generation?
If income generation. In this case, I tend towards #corporate bonds, because at least they still generate decent interest income, preferably distributing.
With high-yield corporate bonds, you can certainly achieve yields in excess of 5%. But I would also manage that with dividend yields, e.g. BDCs or tobacco stocks. Do you have a real use case for bonds?
My portfolio currently consists of 99% equities and ETFs. So I would really have to buy bonds consistently for them to have a relevant influence at some point. Otherwise it would be a marginal addition and minimal change to the overall risk.
And last but not least: do you have any good ideas for #corporate bonds as ETFs? There are plenty of ETFs, e.g. IE00BG0J4957 $HYUS (-0.19%) I found quite interesting at first glance. Or what about active funds like FU Fonds - Bonds Monthly Income $n/a (LU1960394903). I find such funds quite expensive with a TER of 1.9%.
Thanks and regards
xempex
