- Singapore Bond ETFs allow you to earn a potential passive income through a diversified basket of bonds at a low cost.
- However, you may face greater capital risk compared to a similar portfolio of bonds as the ETF price may fall when interest rates go up, and a bond ETF does not have a maturity date.
- To decide which Singapore bond ETF is most suited for our portfolio, we would consider the credit rating and geographical exposure of the underlying bonds, dividend yield and frequency of distribution.
- Singapore bond ETFs currently offer a dividend yield of between 2.3% to 7.7% as of February 2023. The ABF Singapore Bond Index Fund allows investors to gain access to a portfolio of Singapore government bonds.
TL;DR
