BetaShares Global Government Bond 20+ Year ETF
BetaShares has launched a new bond exchange traded fund that provides access to long-dated sovereign bonds issued by major global developed economies.
The ETF - called the BetaShares Global Government Bond 20+ Year ETF - Currency Hedged (ASX: GGOV) - tracks the S&P G7 Sovereign Duration-capped 20+ Year AUD Hedged Bond Index. Bonds in that index have an average credit rating of AA and as at 30 April 2020, 40 per cent of the bonds in the portfolio were rated AAA. Bonds must also have a remaining term to maturity of more than 20 years.
“Our new fund makes the process of investing in global government bonds simple and cost-effective. It offers a robust option for gaining exposure to an important portfolio building block for investors seeking regular income, as well as a high-quality tool to defend portfolios," BetaShares CEO, Alex Vynokur, said.
The ETF will pay income quarterly and has a management cost of 0.22 per cent per annum.