The global exchange traded funds (ETFs) market currently holds about US$5.8 trillion in assets. By the end of 2020, global ETF assets could reach US$7.6 trillion. As the explosive growth of ETFs continues its upwards trajectory, fixed income ETFs are becoming increasingly popular. Globally, fixed income ETF assets have already surpassed the $1 trillion mark. According to data from ETFGI, a leading independent research and consultancy firm covering trends in the global ETF ecosystem, the fixed income category is also growing at a 3-year compound annual growth rate (CAGR) of 21% compared to the 17% CAGR for equities.
Yet, several misconceptions about fixed income ETFs continue to persist. With that in mind, Syfe partnered with State Street Global Advisors, issuer of Singapore’s most popular SPDR Straits Times Index ETF to unravel the myths behind fixed income ETFs and showcase why they are an essential addition to your portfolio.