I recently chanced upon these items on the 'net, courtesy of AFR http://www.afrsmartinvestor.com/p/ho...WTo1Ui353lqp2K http://www.afrsmartinvestor.com/p/ho...8rhVBYzUO4TI4H Both relate to ETF's rather than Index Funds Is anyone investing in ETF's or utlising some of their funds in preference to Index Fund Bonds as part of their overall strategy?
iShares UBS Composite Bond Index Fund UBS Composite Bond Index IAF Mer 0.24 iShares UBS Government Inflation Index Fund UBS Government Inflation Index Mer 0.26 iShares UBS Treasury Index Fund UBS Treasury Index IGB Mer 0.26 Russell Australian Government Bond ETF Australian Government Bonds RGB Mer 0.24 Russell Australian Semi-Government Bond ETF Australian Semi-Government Bonds RSM Mer 0.26 Russell Australian Select Corporate Bond ETF Australian Corporate Bonds RCB Mer 0.28 Vanguard Australian Government Bond Index ETF Australian Government Bonds VGB Mer 0.2
They look interesting. I know this is chicken-vs-egg, but I find myself put off by their low FUM. Many of them only have around $5m on the books. In theory liquidity should never be a problem for an ETF, but I have a strict policy of never wanting to appear on a significant shareholders list!
With Bond ETF's, the bonds can appreciate in price as with a normal bond can't they? IE: If you think interest rates are going to go down (and thus bond prices up) would a bond ETF appreciate in the same way the normal bond would? They arn't just for the coupon rates (like a term deposit) are they?
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