Government Bond ETFs: Positioned as a Cost-Effective Asset Class
Due to high yields on long-term government bonds, which have not been seen since 2011, these assets are gaining appeal. Asset managers are responding by favoring cost-efficient ETFs, with one specific ETF noted for outperforming the MSCI World in a single year.
Government bonds have traditionally held a fixed place in portfolios because they are considered stabilizers and have historically often been used as a buffer against turbulence. However, bonds also had to incur losses during times of stock market crises, such as during the Corona crisis. Currently, long-term government bonds are showing yields that have not been seen since 2011. Given this development, asset managers are increasingly leaning towards cost-efficient ETFs. It is particularly noteworthy that a certain ETF has achieved significant gains and even outperformed the MSCI World within one year, which underscores the current attractiveness of this investment type for both institutional and private investors.