Will you lose money on a bond ETF in a rising interest rate environment?

By Investment Moats • November 30, 2013

If you are invested in a passive portfolio of ETF, chances are you will have doubts how a persistent secular rise in interest rate may mean you losing money on your bond allocations. I been wonder for this for some time, and the problem is that we are so pre-occupied that bond is rather fucked in such an environment that whether the base is really not all that bad.

ABF Singapore Bond Index Fund

Will you lose money on a bond ETF in a rising interest rate environment? wf8bLc4

Currently in Singapore there is only 1 bond ETF which is the Nikko ABF Singapore Bond Index Fund ETF. It is probably your only choice to do passive investing in a equity and bond portfolio with the STI ETF (equity portion) Read Why you should build wealth passively with POSB Invest-Saver This bond ETF is listed on the SGX exchange and you can buy and sell it like your normal stocks through your POEMS, Kim Eng ......