Bond ETF "experts" needed!
Hello again dear community,
today I would like to discuss a topic that I rarely see mentioned (if not at all) here on Getquin: Bond ETFs
After a month or so of DD and research on bonds ( @RaphGM thanks for pointing it out in a comment and sparking my interest on the subject ), much has been learned, and I think I've got the basics down. I'll leave a link to a, in my opinion, well written series of articles for whoever is interested here https://www.bankeronwheels.com/the-definitive-guide-to-bond-index-investing/
To the topic at hand: I've decided to add an initial 5% allocation to bonds in my ETF portfolio, and I think I've got the possible picks all lined up, all distrubiting. Out of this list, I want to pick up at most 2:
So let's start with an overview of each, I purposedly left out all info that classifies as bond jargon, that can be found in the Factsheets, which I'll provide (language specific ones can be fount at justeft when navigating on etf page with your localization, or on issuer official websites).
$ICBU (+0,26 %) iShares USD Intermediate Credit Bond UCITS ETF (Dist)
TER: 0,15%
HEDGED: NO
BENCHMARK: Bloomberg U.S. Intermediate Credit Bond Index
AUM (M): 228,01
YIELD TO MATURITY: 5,24
AVERAGE MATURITY: 5.05
CURR. DIV YIELD: 3,35%
Credit rating composition:
AAA: 9,5%
AA: 6,3%
A: 41%
BBB: 43%
$SEGA (-0,31 %) iShares Core Euro Government Bond UCITS ETF (Dist)
TER: 0,07%
HEDGED: YES
BENCHMARK: Bloomberg Euro Treasury Bond Index
AUM (M): 4440
YIELD TO MATURITY: 3,05
AVERAGE MATURITY: 8.95
CURR. DIV YIELD: 1,47%
Credit rating composition:
AAA: 23%
AA :36%
A: 17%
BBB: 23%
$SPFE (-0,49 %) Bloomberg Global Aggregate Bond UCITS ETF EUR Hedged (Dist)
TER: 0,1%
HEDGED: YES
BENCHMARK: Bloomberg Global Aggregate Bond (EUR Hedged) Index
AUM (M): 566,41
YIELD TO MATURITY: 3,8
AVERAGE MATURITY: 8.48
CURR. DIV YIELD: 2,53%
Credit rating composition:
AAA: 12,3%
AA : 41,8%
A: 31%
BBB: 14%
$IGLE (-0,48 %) iShares Global Government Bond UCITS ETF EUR Hedged (Dist)
TER: 0,25%
HEDGED: YES
BENCHMARK: FTSE G7 Government Bond Index (USD)
AUM (M): 432,94
YIELD TO MATURITY: 3,6
AVERAGE MATURITY: 9,22
CURR. DIV YIELD: 1,98%
Credit rating composition:
AAA: 9,3%
AA :68%
A: 14%
BBB: 8,3%
Let's see now how they performed with a quick comparison. First without dividends