Ghost Stories Ep18: Spotlight on bond ETF investments (with Siyabulela Nomoyi of Satrix)
Description
Equity ETFs tend to dominate the narrative among investors, particularly retail investors. Fixed income or bond ETFs are often ignored, which is a pity now that yields have picked up to current levels.
Fixed income instruments can be difficult to understand. The trick is in the name, as the capital value fluctuates based on a fixed underlying coupon and the yield that the market demands.
In shining a light on this asset class with Siyabulela Nomoyi from Satrix, we discussed:
The reasons why a bond market exists, touching on how vibrant the local market has been for bond listings vs. equity listings
The capital risk that comes with not holding a bond to maturity
An indication of annual returns achieved in recent years by Satrix bond ETFs
How these can be used in balanced portfolios
Retail Savings Bonds and how they differ from Satrix bond ETFs
The different Satrix bond ETFs and the underlying constituents
The use of Satrix bond ETFs in a tax-free savings account
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DisclosureSatrix Investments (Pty) Ltd is an approved FSP in term of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision.While every effort has been made to ensure the reasonableness and accuracy of the information contained in this podcast (“the information”), the FSP’s, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.
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