- Global X Long-Term Government Bond Premium Yield ETF (PAYL)
- Global X Mid-Term Government Bond Premium Yield ETF (PAYM)
Q: Realizing that these 2 new etf have nominal assets at present would you recommend one over the other for income and why? Thanx.
5i Research Answer:
The main difference is PAYL focuses on bonds with duration of 10 years+, whereas PAYM is 5 to 10 years. Considering the outlook for lower rates, and the positive leverage that longer bonds have to lower rates, we would prefer PAYL.