I’d like to understand SGD bonds better, particularly how short-duration bond ETFs behave across different interest-rate cycles.
Equities are relatively intuitive: earnings growth ultimately drives returns. Bonds have more moving parts, including duration, credit spreads, yield-to-maturity and reinvestment risk. A short-duration ETF is especially interesting now because it could provide portfolio stability and income without taking the much larger interest-rate risk of long-duration bonds.
I’d also want to compare the expected return after fees against simpler alternatives such as T-bills, SSBs, fixed deposits and money-market funds. An ETF being liquid and exchange-traded is useful, but ultimately I want to know what additional return I am being compensated for and what additional risk I am taking.
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