Reported 5 months ago
Recently, with the market's expectation of a rate cut in September heating up due to frequent dovish remarks from Federal Reserve officials, the bond market continues to be favored, leading to a significant increase in bond ETF size, reaching NT$1,210 billion by July 16, according to CMoney's statistics. Four ETFs saw an increase of over NT$10 billion in size in July, with the largest being Yuanta ESG Corporate Sustainability Bonds 20+ (00937B) with a growth of NT$14.56 billion, totaling NT$187.07 billion in size and surpassing 300,000 beneficiaries; this ETF leads in both size and number of beneficiaries among investment-grade bond ETFs. Fund managers suggest actively adding positions in bond ETFs due to the relatively high dividend yield of investment-grade bonds, low credit risk, and potential for capital gains, especially in long-term bonds, during a rate cut period. Additionally, it is recommended to focus on the convenience and tax advantages of trading securities, positioning bond ETFs as an alternative to cash holdings. Managers in the market predict that if the U.S. starts to cut rates in September, it could trigger a major bull market in bonds, recommending prioritizing U.S. long-term investment-grade bond ETFs that will benefit the most from a rate cut.
Source: YAHOO