Secret strategy exposed
Whilst interest rate remains elevated for longer, I will remain invested in Fullerton Cashplus funds to capture stable returns.
As 10Y bond yields have rose to 4.72% recently, I will be on the lookout for a good entry point to $iShares 20+ Year Treasury Bond ETF(TLT.US)$. The idea is to reap some monthly dividends and to gain capital appreciation when interest rate eventually falls. If I do indeed hold a position in the near future, I certainly wont hold for long term as the annualised returns do not have good track records.
When there is more clarity and certainty in the horizon, I will be looking to add more positions in AI related themes or ETFs to diversify.
As 10Y bond yields have rose to 4.72% recently, I will be on the lookout for a good entry point to $iShares 20+ Year Treasury Bond ETF(TLT.US)$. The idea is to reap some monthly dividends and to gain capital appreciation when interest rate eventually falls. If I do indeed hold a position in the near future, I certainly wont hold for long term as the annualised returns do not have good track records.
When there is more clarity and certainty in the horizon, I will be looking to add more positions in AI related themes or ETFs to diversify.
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mr_cashcow : Nice, I have been looking into bonds too! Am curious as to why do u choose bond ETFs over bond funds?![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Wonder OP mr_cashcow : Ya hard to decide. Pick TLT cos of
1. Low mgt fee 0.15% compared to bond funds ave 0.30%
2. Nvr had gd experience with the likes of unit trust etc
3. Diversification into different bonds n maturities
4. Perhaps more liquid
May want to check out this post.
TLT: Why Hold Long Bond ETFs in 2024? https://finance.yahoo.com/news/tlt-why-hold-long-bond-120000126.html
mr_cashcow Wonder OP : Thanks for the useful info, adding it to favorite & KIV![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Wonder OP mr_cashcow : np. oh forget to mention those bond funds (HSBC short duration) i look into are primarily invested into corporates (higher % around 80%) so hv to consider the credit ratings too.
haha, growing watchlist.
010Leo : ya etf now 1day. fund around 3day to confirm, up to 10day to see $ back.
Wonder OP 010Leo : yup speedy process for etf