Nikko offers new Singdollar corporate bond ETF

Each ETF unit is priced at $1, with a minimum lot size of 100 units; dividend to be paid once a year, based on the coupon collected from the underlying bonds.

The first exchange-traded fund (ETF) to invest in Singdollar-denominated corporate bonds will be listed here on Aug 27, offering retail investors a way to get "bite-size" exposure to high-grade credit issued by local companies and statutory boards.

The Nikko AM SGD Investment Grade Corporate Bond ETF will replicate a basket of bonds tracked by the iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index, which has a current yield to maturity of 3.2 per cent, Nikko AM said.

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A version of this article appeared in the print edition of The Sunday Times on August 05, 2018, with the headline 'Nikko offers new Singdollar corporate bond ETF'. Subscribe