Want exposure to the bond market? Then bond ETFs could be for you

Fsp Invest, 06 Dec. 2013

Tags: bonds, investing in bonds, buying bonds, bond etfs, exchange traded funds, investing, funds, bond market, list of bond etfs



If you want to invest in bonds, there are other options open to you other than buying Retail Savings Bonds. You can buy exchange traded funds [ETFs] that track bonds. Let’s have a closer look at the bond ETFs that are available for you to buy…



You might have thought that the only way to invest in bonds is to buy Retail Savings Bonds. Retail savings bonds are an easy way to invest in bonds. You just register and buy.

But if you want to explore other ways to invest in bonds, then a bond exchange traded fund (ETF) can give you exposure to the South African bonds market too.

An ETF is an investment fund that trades on the stock exchange like an ordinary share. But unlike a share, an ETF holds assets such as shares, commodities and currencies.

Bond ETFs hold bonds are their assets.

The bond ETFs you can buy

Currently in SA there are four different bond ETFs to invest in:
  • NewFunds Govi [NFGOVI]: This ETF tracks the South African government bond total return index. You can get more information here.
  • NewFunds ILBI [NFILBI]: This ETF tracks the Barclays Capital/ABSA Capital South African government inflation-linked bond index. You can get more information here.
  • RMB Inflation X [RMBINF]: This ETF tracks the South African government bond index. You can get more information here.
  • Zshares Govi [ZGOVI]: This ETF tracks the South African government bond index. You can get more information here.
To invest in bond ETFs, as with any other ETFs, you do it through your stockbroker. You just need to have an account with one. Then it’s a case of instructing your broker to buy the number you want to invest in.

So there you have it, the bond ETFs that are available for you to invest in.


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