Q: Hi Peter,
I would like your opinions on Discount Bonds ETFs vs regular bond ETFs. My understanding is that discount bonds etf is earning interest income comparable to regular bond etfs, but when the central banks decide to cut rate down the road, discount bonds etf will generate higher capital gain than regular bond etfs. So at this point of inflation and rate movement, is it better to purchase discount bonds etfs? Which discount bonds etf is your favourite? How’s your favourite as compared to DXDB and ZDB? Thanks.
I would like your opinions on Discount Bonds ETFs vs regular bond ETFs. My understanding is that discount bonds etf is earning interest income comparable to regular bond etfs, but when the central banks decide to cut rate down the road, discount bonds etf will generate higher capital gain than regular bond etfs. So at this point of inflation and rate movement, is it better to purchase discount bonds etfs? Which discount bonds etf is your favourite? How’s your favourite as compared to DXDB and ZDB? Thanks.