SPDR GOVT ETF (ASX:GOVT)
The GOVT ETF by SPDR invests in Australian Government bonds issued by the Commonwealth/Federal Government, State Governments (Semis) and territories.
What does the GOVT invest in?
The GOVT ETF ultimately ends up invested in Australian Government bonds, semi-government bonds (e.g., state governments) and high grade corporates and supranational entities. The bonds have maturities ranging from 0 years to 20+ years, with the average for the Government bonds held by the ETF falling between 5 and 12 years.
What do investors use GOVT for?
As it can be quite difficult for small investors to get exposure to the Government bond market, an investor could use the GOVT ETF to get exposure to the highest grade bonds in Australia.
Best ETFs warnings
The following warnings are applied by our team, based on quantitative metrics and our internal methodology. These risks are not exhaustive and therefore they should not be relied upon. Always read the PDS of the function and speak to your financial adviser before acting on this information.
Looking for something better?
This brilliant (and free!) report is issued by Best ETFs Australia, a division of The Rask Group Pty Ltd. It is not a recommendation.
Speak to a financial professional before relying on this information and please read our Financial Services Guide (FSG).