eToro is expanding its investment offerings by presenting five new Exchange-Traded Funds (ETFs). It is more suitable for long-term investments.
Israel-headquartered leading social multi-asset global broker eToro recently announced the addition of five new Exchange Traded Funds (ETFs) to its comprehensive trading suite, notably a target Maturity Bond Fund. From now on, clients can open positions on the new ETFs, $IBDQ, $IBDP, $IBDR, $IBTG, and $IBTF, on the eToro trading platform.
This particular type of bond fund is very similar to the experience of owning a personal bond. Each fund holds bonds to maturity, offering a unique opportunity to lock in current yields. Even if interest rates fall in the future, investors will still get their early profit.
The launch of this new ETF contains bonds with fixed maturity dates and defined life spans. Bonds in the target maturity portfolio regularly earn interest and well-known coupons. This interest is distributed to investors to generate income. At the same time, the principal value of the investment (face value) is paid out on maturity when the fund closes.
The eToro broker offers many advantages over traditional fixed-income ETFs, including broad diversification, direct access, and cost savings. Prime arrangements with a target maturity reduce interest rate risk by holding funds until maturity. It would suit investors saving for a specific event, such as retirement or buying a house.
In addition, these new ETFs have slightly higher fees than traditional fixed-income ETFs. As such, it may not be attractive to long-term savers planning to reinvest.
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