With the yen depreciation and global interest rate cuts, it's a great opportunity for overseas bond ETFs! Introducing three selections under the new NISA framework and five selections in USD. Annual return exceeds 20%.
While Japan is facing a situation where the Bank of Japan is considering additional rate hikes due to yen depreciation, the rest of the world is shifting towards a global interest rate cut.Considering investments in overseas bondsWouldn't it be good to shift focus to overseas bond investments?Among overseas bond ETFs, there are not a few stocks that are updating their all-time highs at the moment..
The characteristic of bond investment compared to stocks is that it provides stable yields (dividends) while having small price fluctuations, so the expectation of price increase is low. However, with the decrease in interest rates,In a low-interest rate environment, bond prices are expected to rise, so not only can you expect regular income gains, but also capital gains.Furthermore, if the depreciation of the yen continues, foreign bond ETFs will be in an "unparalleled" state.Therefore, starting from July 2023,There is a possibility of a 24% to 26% increase in revenue compared to the previous year in 2024.
Select stocks with an investment return in the past year (annual distribution yield + year-to-date change rate - trust fee) of over 10%Among these,Introducing 3 bond ETFs that are eligible for investment in the growth investment frame of the new NISAThe deviation from the closing price of 2,371 yen on the 9th is about Introducing 5 dollar-denominated bond ETFs listed on the US market (comprising 2 types: risk-controlled and high-yield) with monthly distributionsUsing similar indicators, the ETF with the best investment return in the past year will be selected.
The characteristic of bond investment compared to stocks is that it provides stable yields (dividends) while having small price fluctuations, so the expectation of price increase is low. However, with the decrease in interest rates,In a low-interest rate environment, bond prices are expected to rise, so not only can you expect regular income gains, but also capital gains.Furthermore, if the depreciation of the yen continues, foreign bond ETFs will be in an "unparalleled" state.Therefore, starting from July 2023,There is a possibility of a 24% to 26% increase in revenue compared to the previous year in 2024.
Select stocks with an investment return in the past year (annual distribution yield + year-to-date change rate - trust fee) of over 10%Among these,Introducing 3 bond ETFs that are eligible for investment in the growth investment frame of the new NISAThe deviation from the closing price of 2,371 yen on the 9th is about Introducing 5 dollar-denominated bond ETFs listed on the US market (comprising 2 types: risk-controlled and high-yield) with monthly distributionsUsing similar indicators, the ETF with the best investment return in the past year will be selected.
◆ $NEXT FUNDS Emerg Bd JPM EMBI+ Unhdg ETF (2519.JP)$You can find the "News" feature under the "Market"-"More" section.The investment return in the past year exceeded 20%!
The official name is "NEXT FUNDS Emerging Market Bond J.P. Morgan Emerging Market Bond Index Plus (Non-Hedged) ETF".
It is an index that targets Brady Bonds, loans, and Eurobonds issued by emerging countries in US dollars (bonds issued by emerging countries in US dollars after debt restructuring, with measures taken such as guarantees by the United States). It is linked to the JP Morgan Emerging Market Bond Index Plus (converted to yen) published by JP Morgan Securities. As of the end of May, government bond securities from Qatar, Argentina, Ecuador, and other countries are included.The management company is Nomura Asset Management. The trust fee is about 0.209% including tax. The distribution payment reference dates are March and September 7th. It was listed (established) in July 2018, and the rate of increase/decrease since the establishment was 38.6%, and for the past three years, it was 19.5% (as of the end of May, with reinvestment of dividends assumed). The distribution per share in the past year was 49.3 yen, and the yield was 4.40%. The price fluctuation rate in the past year was 16.24%.The investment return in the past year exceeded 20%!
The official name is "NEXT FUNDS, New Economy Bonds, J.P. Morgan Emerging Markets Bond Index Plus (without currency hedge) ETF".Emerging countries issue US dollar-denominated Brady Bonds (US dollar-denominated bonds issued by emerging countries after debt restructuring, with measures such as guarantees by the United States), loans, and Eurobonds. It is an index linked to the JP Morgan Emerging Markets Bond Index Plus (in yen) published by JP Morgan Securities. As of the end of May, government bond securities from Qatar, Argentina, Ecuador, and other countries are included..On July 2nd, it updated the highest level since last year.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
The official name is "NEXT FUNDS Emerging Market Bond J.P. Morgan Emerging Market Bond Index Plus (Non-Hedged) ETF".
It is an index that targets Brady Bonds, loans, and Eurobonds issued by emerging countries in US dollars (bonds issued by emerging countries in US dollars after debt restructuring, with measures taken such as guarantees by the United States). It is linked to the JP Morgan Emerging Market Bond Index Plus (converted to yen) published by JP Morgan Securities. As of the end of May, government bond securities from Qatar, Argentina, Ecuador, and other countries are included.The management company is Nomura Asset Management. The trust fee is about 0.209% including tax. The distribution payment reference dates are March and September 7th. It was listed (established) in July 2018, and the rate of increase/decrease since the establishment was 38.6%, and for the past three years, it was 19.5% (as of the end of May, with reinvestment of dividends assumed). The distribution per share in the past year was 49.3 yen, and the yield was 4.40%. The price fluctuation rate in the past year was 16.24%.The investment return in the past year exceeded 20%!
The official name is "NEXT FUNDS, New Economy Bonds, J.P. Morgan Emerging Markets Bond Index Plus (without currency hedge) ETF".Emerging countries issue US dollar-denominated Brady Bonds (US dollar-denominated bonds issued by emerging countries after debt restructuring, with measures such as guarantees by the United States), loans, and Eurobonds. It is an index linked to the JP Morgan Emerging Markets Bond Index Plus (in yen) published by JP Morgan Securities. As of the end of May, government bond securities from Qatar, Argentina, Ecuador, and other countries are included..On July 2nd, it updated the highest level since last year.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
◆ $NEXT FUNDS Intl Bd FTSE WGBI exJP UH ETF (2511.JP)$You can find the "News" feature under the "Market"-"More" section.It includes government bonds of major countries such as the United States and France.
The official name is "NEXT FUNDS Foreign Bond / FTSE World Government Bond Index (excluding Japan / without currency hedge) Exchange Traded Fund".
It is a bond index that combines the total return on government bonds of major countries in the world weighted by market capitalization in each market, and is linked to the "FTSE World Government Bond Index (excluding Japan, without hedge, yen-based)" published by FTSE Fixed Income. As of the end of May, it is mainly invested in US Treasury bonds and French government bonds, with an average final yield of 4.0% and an average duration of 6.5 years.
The management company is Nomura Asset Management. The trust fee is approximately 0.132%. The distribution payment reference date is on the 7th of March and September. It was listed (established) in December 2017, and the rate of increase or decrease since its establishment is 29.4%, and 17.8% in the past three years (as of the end of May, assuming reinvestment of distributions). The distribution per unit in the past year is 31.7 yen, and the yield is 3.73%. The price rate of increase or decrease in the past year is 8.85%.Updating the highest price since listing on June 28th.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
The official name is "NEXT FUNDS Foreign Bond / FTSE World Government Bond Index (excluding Japan / without currency hedge) Exchange Traded Fund".
It is a bond index that combines the total return on government bonds of major countries in the world weighted by market capitalization in each market, and is linked to the "FTSE World Government Bond Index (excluding Japan, without hedge, yen-based)" published by FTSE Fixed Income. As of the end of May, it is mainly invested in US Treasury bonds and French government bonds, with an average final yield of 4.0% and an average duration of 6.5 years.
The management company is Nomura Asset Management. The trust fee is approximately 0.132%. The distribution payment reference date is on the 7th of March and September. It was listed (established) in December 2017, and the rate of increase or decrease since its establishment is 29.4%, and 17.8% in the past three years (as of the end of May, assuming reinvestment of distributions). The distribution per unit in the past year is 31.7 yen, and the yield is 3.73%. The price rate of increase or decrease in the past year is 8.85%.Updating the highest price since listing on June 28th.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
◆ $Listed Idx Fd Australian Gov Bd NoCcyHdg (2844.JP)$You can find the "News" feature under the "Market"-"More" section.Outstanding stability with a triple-A credit rating.
It tracks the comprehensive investment return of Australian government bonds with a remaining term of 7-10 years, based on the 'Bloomberg Australian Government Bonds (7-10 years) Index TTM' (without currency hedge, yen-based). As of the end of June, the average final yield is 4.67% and the average remaining term is 8.24 years. Australian government bonds are rated by Moody's and S&P.Highest triple-A rating given for creditworthiness.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
The management company is Nikko Asset Management. The trust fee is about 0.121% including tax. The distribution payment reference dates are the 2nd, 5th, 8th, and 11th of each month. Listed (established) in February 2022, with a fluctuation rate since establishment of 12.22%, and 12.64% in the past year (as of the end of May, assuming reinvestment of dividends). The distribution per unit in the past year is 207 yen, with a yield of 3.73%. The price fluctuation rate in the past year is 8.85%.
It tracks the comprehensive investment return of Australian government bonds with a remaining term of 7-10 years, based on the 'Bloomberg Australian Government Bonds (7-10 years) Index TTM' (without currency hedge, yen-based). As of the end of June, the average final yield is 4.67% and the average remaining term is 8.24 years. Australian government bonds are rated by Moody's and S&P.Highest triple-A rating given for creditworthiness.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
The management company is Nikko Asset Management. The trust fee is about 0.121% including tax. The distribution payment reference dates are the 2nd, 5th, 8th, and 11th of each month. Listed (established) in February 2022, with a fluctuation rate since establishment of 12.22%, and 12.64% in the past year (as of the end of May, assuming reinvestment of dividends). The distribution per unit in the past year is 207 yen, with a yield of 3.73%. The price fluctuation rate in the past year is 8.85%.
There are also good return ETFs in the US market denominated in dollars.The addition of the weakened yen effect can lead to further enhancement of returns.Not eligible for the new NISA framework, but the attractiveness of being able to expect monthly distribution payments is also a draw.which allows for expected monthly distribution payments.Here,Pick up stocks with a return of more than 10% in dollar terms.Pick up stocks.
●The overseas bond ETF listed in the USA, which reduces risk by investing in short-term bonds.
◆ $SPDR Bloomberg Barclays Investment Grade Floating Rate ETF (FLRN.US)$(SPDR Bloomberg Investment Eligible Variable Interest Rate ETF):Includes variable rate bonds with a maturity of less than 5 years.
Linked to the 'Bloomberg USD Variable Rate Bond Less than 5 Years Index' which consists of dollar-denominated bonds that pay a spread on top of the variable interest rate. It targets securities with a remaining term of 1 month or more but less than 5 years, and an issuance amount of at least 0.3 billion dollars as of the end of December 2023.Including bonds such as the International Reconstruction and Development Bank and the European Bank for Reconstruction and Development (EBRD).Managed by SPDR State Street Global Advisors. The management fee is approximately 0.15%. The dividend payment reference date is the beginning of each month.
Listed in November 2011, the average annual total return over the past 10 years is 2.00%, and for the most recent 3 years, it is 3.24% (as of the end of March). The dividend yield for the past year is 6.35%. The price fluctuation rate for the past year is 6.09%.Updated to a record high on July 1.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
Linked to the 'Bloomberg USD Variable Rate Bond Less than 5 Years Index' which consists of dollar-denominated bonds that pay a spread on top of the variable interest rate. It targets securities with a remaining term of 1 month or more but less than 5 years, and an issuance amount of at least 0.3 billion dollars as of the end of December 2023.Including bonds such as the International Reconstruction and Development Bank and the European Bank for Reconstruction and Development (EBRD).Managed by SPDR State Street Global Advisors. The management fee is approximately 0.15%. The dividend payment reference date is the beginning of each month.
Listed in November 2011, the average annual total return over the past 10 years is 2.00%, and for the most recent 3 years, it is 3.24% (as of the end of March). The dividend yield for the past year is 6.35%. The price fluctuation rate for the past year is 6.09%.Updated to a record high on July 1.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
◆ $Jpmorgan Ultra-Short Income Etf (JPST.US)$You can find the "News" feature under the "Market"-"More" section.Including dollar-denominated bonds of Japanese megabanks and Toyota.
Using the "ICE BofA 3-Month US Treasury Bill Index" as the benchmark,mainly investing in eligible US dollar-denominated bonds with a duration of less than 1 year.As of the end of November 2023,including dollar-denominated bonds from financial institutions and auto manufacturers around the world, including Japan, such as the 3 megabanks and Toyota Motor.The management company is JP Morgan Asset Management. The management fee is about 0.18%. The dividend payment reference date is the beginning of each month. Listed in May 2017, the average annual total return since listing is 2.39%, and 2.42% over the past 5 years (as of the end of March). The dividend yield for the past year is 5.64%. The price fluctuation rate for the past year is 5.59%.
It has reached a new high since its listing on July 1st.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
Using the "ICE BofA 3-Month US Treasury Bill Index" as the benchmark,mainly investing in eligible US dollar-denominated bonds with a duration of less than 1 year.As of the end of November 2023,including dollar-denominated bonds from financial institutions and auto manufacturers around the world, including Japan, such as the 3 megabanks and Toyota Motor.The management company is JP Morgan Asset Management. The management fee is about 0.18%. The dividend payment reference date is the beginning of each month. Listed in May 2017, the average annual total return since listing is 2.39%, and 2.42% over the past 5 years (as of the end of March). The dividend yield for the past year is 5.64%. The price fluctuation rate for the past year is 5.59%.
It has reached a new high since its listing on July 1st.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
◆ $Short-Treasury Bond Ishares (SHV.US)$You can find the "News" feature under the "Market"-"More" section.Linked to the extremely stable US short-term treasury bonds.
Linked to the "ICE Short-Term US Treasury Bonds Index", which consists of US Treasury short-term securities with a maturity of less than one year.Managed by BlackRock. The management fee is about 0.15%. The distribution payment standard date is the first of every month.
Listed in January 2007, the average annual total return since listing is 1.23%, and the total return for the past five years is 1.91% (as of the end of March). The distribution yield for the past year is 5.53%. The price change rate for the past year is 4.85%.Updating the highest price since listing on July 1stIt is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
Linked to the "ICE Short-Term US Treasury Bonds Index", which consists of US Treasury short-term securities with a maturity of less than one year.Managed by BlackRock. The management fee is about 0.15%. The distribution payment standard date is the first of every month.
Listed in January 2007, the average annual total return since listing is 1.23%, and the total return for the past five years is 1.91% (as of the end of March). The distribution yield for the past year is 5.53%. The price change rate for the past year is 4.85%.Updating the highest price since listing on July 1stIt is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
●Targeting a high yield of up to 8% based solely on yield, an overseas bond ETF listed in the USA that emphasizes high yield.
◆ $Spdr Portfolio High Yield Bond Etf (SPHY.US)$(SPDR Portfolio High Yield Bond ETF):The dividend yield is approximately 8%.
It is linked to the ICE BofA US High Yield Index, which consists of USD-denominated bonds with an issuance amount of over 0.25 billion dollars, with a credit rating below investment grade, a term of over 3 years, and a remaining term of more than 1 year as of the end of December 2024.Including bonds such as Federal Home Loan Mortgage Corporation (Fannie Mae) bonds and Federal Home Loan Mortgage Corporation (Freddie Mac) bonds.have been included.
The management company is SPDR State Street Global Advisors. The management fee is approximately 0.05%. The distribution payment basis is the beginning of each month. Listed in June 2012, the average annual total return for the past 10 years is 4.22%, and for the past 3 years it is 2.32% (as of the end of March). The distribution yield for the past 1 year is 8.49%. The price fluctuation rate for the past 1 year is 9.14%.Updated the highest price since listing on June 12.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
It is linked to the ICE BofA US High Yield Index, which consists of USD-denominated bonds with an issuance amount of over 0.25 billion dollars, with a credit rating below investment grade, a term of over 3 years, and a remaining term of more than 1 year as of the end of December 2024.Including bonds such as Federal Home Loan Mortgage Corporation (Fannie Mae) bonds and Federal Home Loan Mortgage Corporation (Freddie Mac) bonds.have been included.
The management company is SPDR State Street Global Advisors. The management fee is approximately 0.05%. The distribution payment basis is the beginning of each month. Listed in June 2012, the average annual total return for the past 10 years is 4.22%, and for the past 3 years it is 2.32% (as of the end of March). The distribution yield for the past 1 year is 8.49%. The price fluctuation rate for the past 1 year is 9.14%.Updated the highest price since listing on June 12.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
◆ $VanEck Emerging Markets High Yield Bond ETF (HYEM.US)$You can find the "News" feature under the "Market"-"More" section.Annual return exceeds 17%, investment is possible from around 3000 yen.
It is linked to the 'ICE BofA Diversified High Yield US Emerging Markets Corporate Plus Index (EMLH),' which consists of US dollar-denominated bonds issued by non-sovereign emerging market issuers with less than investment grade ratings. As of the end of April, bonds issued by ICBC, the Government of Buenos Aires Province in Argentina, Bankcomm in China, and others are included.
The management company is VanEck. The management fee is approximately 0.40%. The distribution payment basis is the beginning of each month. Listed in May 2012, the average annual total return since listing is 3.74%, and for the past 5 years it is 1.59% (as of the end of April). The distribution yield for the past 1 year is 6.64%. The price fluctuation rate for the past 1 year is 11.07%. The minimum purchase amount is approximately 3000 yen.Renewal of the highest price since listing on June 25th.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
It is linked to the 'ICE BofA Diversified High Yield US Emerging Markets Corporate Plus Index (EMLH),' which consists of US dollar-denominated bonds issued by non-sovereign emerging market issuers with less than investment grade ratings. As of the end of April, bonds issued by ICBC, the Government of Buenos Aires Province in Argentina, Bankcomm in China, and others are included.
The management company is VanEck. The management fee is approximately 0.40%. The distribution payment basis is the beginning of each month. Listed in May 2012, the average annual total return since listing is 3.74%, and for the past 5 years it is 1.59% (as of the end of April). The distribution yield for the past 1 year is 6.64%. The price fluctuation rate for the past 1 year is 11.07%. The minimum purchase amount is approximately 3000 yen.Renewal of the highest price since listing on June 25th.It is listed on May 23. It tracks the index of Mirae Asset India Select Top10+Index (including dividends) in yen.
Currently, not only emerging countries but also advanced countries have switched to interest rate cuts in June, following Switzerland in March and Sweden in May. Basically,The price of bonds rises significantly only when there are expectations of interest rate cuts and when the underlying interest rates are declining..
Looking at it from the opposite perspective, if the interest rates are not declining, there is a possibility that bond prices may rise significantly.If the interest rate decline subsides, price increases cannot be expected.At the same time, the distribution yield will also decrease as interest rates decrease.
Furthermore,If the yen weakens and turns into a stronger yen, there is a possibilitythat the return converted into yen may decrease or become negative.
Furthermore,If interest rates reverse and rise, prices will fall, so negative returns are also possible.In addition, it is necessary to recognize the credit risk of the investment bond despite the fact that multiple stocks are included.
- moomoo News Mark
Source: Respective management company's website, MINKABU, moomoo
Source: Respective management company's website, MINKABU, moomoo
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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