I am sure that you have heard about government bonds. Before we talk about the best, in our opinion, at the moment, let’s recall the most important moments about the assets of this type.
Facts about government bonds
A government loan bond is a government debt obligation created to raise funds. In the United States, the Treasury is responsible for bonds, while in other countries, the Central Bank or other authorities may assume this role.
This type of asset is very popular among investors, especially those who are looking for passive or low risk investment methods. Do not bypass them and those who just want to protect themselves from instability in the market.
When buying government bonds, you lend money to the state for a while, for which you make a profit, the amount of which depends on the risks.
Before buying bonds, you need to realize that there are economic, political and social risks associated with them. For example, unstable states that are likely to default, offer more favorable conditions than countries with excellent financial reporting.
Most government bonds are risk free for traders. But, of course, profits do not cause delight, because of low interest rates.
Why choose ETFs on government bonds?
Most government bonds can be purchased from any of the extensive list of brokers, banks and agencies, with the exception of bonds of the US Treasury, which are bought directly from the US government through its website.
Another way is to use ETFs, which is much easier and faster to invest in bonds. And don’t worry, bond ETFs also provide monthly payments. Capital gains will be available from the annual dividend.
Our selection for 2017
SPDR Bloomberg Barclays Long Term Treasury ETF
Vanguard Extended Duration Treasury ETF
PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF