BetaShares Launches a New Government Bond ETF

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Betashares has launched BetaShares Global Government Bond 20+ Year ETF – Currency Hedged (ASX:GGOV), its seventh cash and fixed income fund, designed to invest in government bonds from G7 countries. It will be benchmarked against the S&P G7 Sovereign Duration-Capped 20+ year AUD Hedged Bond Index.

While the fund is new, performance of the Index has been strong with returns since inception of 9.96%p.a., one year 19.06%, three years 10.85% and five years 8.19%.

Yield to maturity is 0.97%p.a. and the ETF has a high average credit rating of AA.

The average maturity of the investments, in line with the Index containing bonds with more than 20 years until maturity, is 27.94 years.

This fund is highly exposed to interest rate risk. Rising interest rates would adversely impact the value of the securities.

Note: Historic returns are no indication of future performance.

 

 

 

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Elizabeth Moran
Elizabeth is a nationally-recognised independent expert on fixed income. She has more than 25 years experience in banking and financial institutions in Australia and the UK and has been published in every major Australian newspaper and investment website. Prior to becoming an independent commentator in 2019 she spent more than 10 years as the head of education and research at fixed income broker FIIG Securities. Prior to joining FIIG, Elizabeth worked as an Editor/Analyst for Rapid Ratings a quantitative credit rating agency. She also spent five years in London, three working as a credit rating analyst for NatWest Markets.

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