Licence to Yield – The Definitive Guide To Bond Index Investing

PART 1 - INTRODUCTION

This guide is your mission dossier, equipped to be the ultimate – and indeed, final – resource you’ll ever need to master the art of Bond ETFs.

From outlining which bond categories are best for different objectives in “Live and Let Buy”, to explaining why holding bond ETFs is beneficial even when prices dip in “Cash in Not Enough”, we demystify the intricate world of Bond ETFs.

Why Is Our Guide Different?

First, We Design Selection Frameworks

We have been amongst the first in Europe to explain the quirks of Bond ETFs to individual investors. We leverage our Portfolio Management experience to design rigorous methodologies – these cover everything from aligning bond types with your goals, to handpicking the perfect funds for both your short-term missions and long-term quests.

Then, We Select The Best Bond ETFs

We then use these methodologies to select the very best UCITS and non-UCITS ETFs. We take a Long-Term Investor’s Perspective and select ETFs that satisfy our criteria:

  • Reputable
  • Large
  • Established
  • Cheap
  • Available and Liquid 

Click below to jump straight to the shortlist.

Finally, We Consider All Audiences

This guide can benefit Bankeronwheels.com’s three core audiences.  We highlight what sections you may find particularly helpful, depending on your profile:

THE GOLDEN RETRIEVER

The Golden Retriever, aka Wise Passive Investor –  A hands-off Investor, typically using a Fund of Funds that includes a Bond component, may benefit from having some background on what affects his portfolio performance. However, most topics in this guide are designed for intermediate or advanced investors.

THE CYCLIST

The Cyclist, aka Semi-Passive DIY Investor –  A DIY Investor willing to customise her portfolio can probably benefit the most from guides. We dive into key Bond Categories, depending on the investor’s time horizon, life situation (accumulation or retirement) or Inflation hedging needs.

THE BANKER

The Banker, aka Evidence-Based Investor – For Advanced Investors, this guide offers insight into more aggressive rebalancing strategies, for example keeping US Bond ETFs unhedged. 

THE GOLDEN RETRIEVER
The Golden Retriever, aka Wise Passive Investor –  A hands-off Investor, typically using a Fund of Funds that includes a Bond component, may benefit from having some background on what affects his portfolio performance. However, most topics in this guide are designed for intermediate or advanced investors.
THE CYCLIST

The Cyclist, aka Semi-Passive DIY Investor –  A DIY Investor willing to customise her portfolio can probably benefit the most from guides. We dive into key Bond Categories, depending on the investor’s time horizon, life situation (accumulation or retirement) or Inflation hedging needs.

THE BANKER

The Banker, aka Evidence-Based Investor – For Advanced Investors, this guide offers insight into more aggressive rebalancing strategies, for example keeping US Bond ETFs unhedged. 

From Bankeronwheels.com
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What's in thIS Guide?

To Access Article click on a title below:

1. Introduction

You are reading this introduction.

This article is golden-retriever (beginner) friendly. 

Discover how different bond types cater to diverse investment goals. Learn about high-quality Government and Aggregate Bond ETFs for long-term stability, the double-edged sword of Inflation Bond ETFs, and the appeal of Investment Grade Corporate Bond ETFs for retirees. Unearth suitable choices for short-term investors and bond types best avoided. This is your quick-start guide to strategic Bond ETF selection. 

This chapter will make you grasp 80% of what truly matters in Government Bond ETFs with just 20% of concepts. Gain insights into the power of rebalancing as a long-term investor and understand how duration can influence your returns, especially in a rising yield environment. This chapter will equip you with practical knowledge to choose the right ETF characteristics for your goals.

This chapter is designed to guide you through a comprehensive, five-step process of selecting the ideal ETF for your long-term portfolio. Grasp the importance of assessing your investment time horizon and the benefits of geographical diversification. Navigate the trade-offs between risk and return when considering Aggregate and Government Bond ETFs. We look at COVID-19 market sell-off performance and the relevance of fees. 

The Art of Currency Hedging in Bond ETFs is your golden ticket to navigating the tumultuous world of foreign exchange. This chapter unravels the intricacies of currency hedging as a safeguard for both short-term and long-term investors. Uncover why hedging is an essential part of portfolio stability, but also why some seasoned investors choose to forego it for a chance at greater rebalancing potential. 

6. Inflation Another Day: How To Pick an Inflation-Linked Bond ETF

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7. Best Government & Aggregate Bond ETFs

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Thank you for reading.
Good Luck and Keep’em* Rolling!

(* Wheels & Dividends)

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All information found here, including any ideas, opinions, views, predictions expressed or implied herein, are for informational, entertainment or educational purposes only and do not constitute financial advice. Consider the appropriateness of the information having regard to your objectives, financial situation and needs, and seek professional advice where appropriate. Read our full terms and conditions.