What bond ETFs offer investors now

Piggy bank on 100 euro note

Experts recommend buying bonds through exchange-traded funds (ETF), which ensure some risk diversification.

(Photo: IMAGO/IlluPics)

Frankfurt Numerous experts agree that the European Central Bank (ECB) and the US Federal Reserve will not increase their interest rates much further. Jumana Saleheen, chief economist for Europe at the US fund company Vanguard, says: “We are close to the interest rate peak.”

If you want to secure good interest rates, you still have the chance to do so now. Because bonds are more attractive today than they were a year ago, it is advisable to reserve part of your portfolio for these securities.

On the other hand, the risk of a recession in the USA and Europe has not yet been averted. Bonds can increasingly default because companies that issued them go bankrupt.

Therefore, it can make sense to buy bonds through exchange-traded funds (ETFs), which provide some risk diversification. Fees are often less than 0.1 percent annually. A look at the details.

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