Government Bonds ETF

Governments everywhere borrow money for public spending. In fact, the bond market is the world’s largest financial market and government bonds are the largest part of it.¹ Governments normally commit to reward investors by paying a coupon, or interest, on the bond, as well as to repay it at maturity after a set number of years.

So, by investing in government bonds you can contribute to countries being able to finance their public services – from transport, to healthcare, to education.

¹Source: ICMA.

As it is often the general case with ETFs, this Fund can turn complexity into simplicity. Building a diversified portfolio of European government bonds would be cumbersome, requiring time, expertise and attention. By contrast, just one Government Bonds ETF can – depending on its investment policy – give you exposure to bonds from multiple government issuers, with a broad range of maturities.

What’s more, ETFs are relatively low-cost way to invest compared to the do-it-yourself solution or active funds. This matters more than ever in today’s low-yield world.

Government Bonds ETF only invests in the safest euro government bonds. Expert credit rating agencies have awarded them the highest rating of AAA or AA. They currently include the bonds issued by: Germany, France, Belgium, Netherlands and Austria.

This ETF invests in the 25 largest and most liquid Euro government bonds. They include bonds that receive the highest ratings from credit rating agencies, such as Germany and the Netherlands, as well as those that are higher risk but also pay higher yields, including Italy and Portugal.