In this article, I will provide my personal views and have an open discussion with you on the recently launched bond ETF: Nikko AM SGD Investment Grade Corporate Bond ETF.
If haven’t heard of it, this is a new product created by Nikko AM and you can find more information about the bond ETF over here.
1. IOP of an ETF is unlike IPO of a stock
There is no need to rush to subscribe the bond ETF during IOP (Initial Offering Period). For subscription of the bond ETF during the IOP, you will get all units for the amount that you subscribe. This is because ETF is a fund.
The fund manager will create new units of the fund for the investment amount that you put in. There is no need to ballot like IPO of a stock, where there is a limited number of shares for investors …