Attention ETF enthusiasts, beware of Gerd Kommer's insights!
Sure thing! Here's your rewritten article:
The Bond ETF Inspired by Gerd Kommer: A Low-Risk, High-Quality Option
In a world where stock ETFs have been ruling the roost, it's time to shift your focus to a new kid on the block – the bond ETF. Introducing the L&G Corporate Bond ex-Banks Higher Ratings 0-2Y ETF (WKN: A40E7Q), brought to you by Legal & General and inspired by none other than investment luminary, Gerd Kommer. And guess what? It's a bond ETF that promises a low-risk, high-quality investment experience tailor-made for you!
So, in June 2023, Legal & General and Gerd Kommer teamed up to launch the L&G Gerd Kommer Multifactor Equity ETF (WKN: WELT0A), a global index tracker of around 5000 stocks. In October 2024, Legal & General followed it up with the L&G Corporate Bond ex-Banks Higher Ratings 0-2Y ETF EUR Hedged (WKN: A40E7Q). It may not carry Gerd's name, but make no mistake – this ETF bears the seed of Kommer's brilliant investment ideas.
Bye-bye Banks! Hello Low-Risk Bond Exposure
"For our wealth management clients," says Kommer, "the Ex-Banks ETF is a core component of the bond allocation. Why? Because we aim to offer them a low-risk bond product where banks play no role." With a history of banking crises under our belts, the wise old man that is Kommer is unsurprisingly skeptical about the safety of banks.
He also points out that wealthy individuals often have too much cash sitting in their banks, amounting to a risk they may not be aware of – it's not covered by state deposit insurance. But fear not, Kommer! Trust the man whom the finance world turns to for guidance. He's got your back!
Kommer favors financial giants like insurers and payment service providers. The L&G Ex-Banks ETF revolves around 500 corporate bonds with maturities of 0 to 2 years, each holding an 'A' rating or higher. And here's the best part: the ETF accumulates income, costs a mere 0.15% per year, and even hedges dollar bonds into euros, so eurozone investors can relax without worrying about currency risk. Boom!
TL;DR: The L&G Corporate Bond ex-Banks Higher Ratings 0-2Y ETF is a stellar bond ETF that offers low-risk exposure to high-quality corporate bonds, excluding banks. It's an excellent choice for those who seek a stable, dependable, and inconvenience-free investment experience in the world of fixed income.
Essential Data:
- Name: L&G Corporate Bond ex-Banks Higher Ratings 0-2Y ETF (WKN: A40E7Q)
- Issue date: 17.10.2024
- Running costs: 0.15% p.a.
- Income distribution: Accumulating
- Replication method: Physical, combined with Optimised Sampling
- Index tracked: J.P. Morgan Global Credit Index (GCI) Ultra Short ex Banks 2% Issuer Capped Index
- Rating: AAA to A
- Number of issuers: Approx. 130
- Issuer cap: An individual issuer is capped at 2%
- Minimum size of a bond issue: 300 million USD or EUR
- Sectors: All sectors, excluding banks
- Yield to maturity as of 28.02.2025: 2.7% p.a. (including estimated hedging costs)
- Duration: Approx. 1.1 years
- Rebalancing frequency: Monthly
- Fund domicile (legal seat): Ireland
- Source: Gerd Kommer GmbH
Extra Reading: Are Rheinmetall, Thales, and co the ace up the sleeve of this new defense ETF?
Now that you're all clued up on the L&G Corporate Bond ex-Banks ETF, have a shot at diversifying your investment portfolio with this low-risk, high-quality bond ETF. Because why settle for less when you can invest like a pro, right? So, go ahead and reap the benefitsof Gerd Kommer's investment wisdom! Happy invested-ing!
- The L&G Corporate Bond ex-Banks Higher Ratings 0-2Y ETF, a low-risk, high-quality option with an issuer cap of 2%, is a stellar choice for investors seeking a stable investment experience in the world of fixed income.
- Gerd Kommer, an investment luminary, favors financial giants like insurers and payment service providers, and the L&G Ex-Banks ETF accumulates income, costs a mere 0.15% per year, and even hedges dollar bonds into euros for eurozone investors.
- In the world of technology-focused investing, one might consider an ETF like the L&G Gerd Kommer Multifactor Equity ETF, launched in June 2023, which is a global index tracker of around 5000 stocks.
- For wealth management clients, the L&G Corporate Bond ex-Banks ETF, introduced by Legal & General, is a core component of the bond allocation, as it offers a low-risk bond product where banks play no role, a critical aspect given the history of banking crises.
