Long-Term Bond ETFs Gain Popularity

Reported about 1 year ago

In the cooling inflation and anticipated rate cut environment, long-term bond ETFs like the Fubon ESG Investment Grade Bond 20+ (00937B) witnessed a surge in popularity. As of June 12 this year, among the top ten bond ETFs with the highest increase in size, the Fubon ESG Investment Grade Bond 20+ had the largest increase of NT$137.6 billion, followed by Cathay 20-Year US Bond and Yuanta US 20-Year Bond with increases of NT$79 billion and NT$66.7 billion respectively. The bonds in 00937B focus on sustainable ESG top-rated companies, issuing long-term BBB corporate bonds with a coupon rate exceeding 4.5% to enhance dividend distribution, appealing to investors for stable income sources and potential capital gains, thus drawing high market attention.

Source: YAHOO

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