Advantages
- Negotiate Bonds issued by major world governments (USA, Germany, Japan ,...)
- Invest in different basket of Bonds, each with a specific risk level (i.e. rating)
- With ETFs you can invest in Bonds:
- in low-risk corporations (Top Investment Grade Bonds)
- in high-risk corporations (High Yield Bonds)
- Invest with low capital requirements
- Margin requirements of just 10% when trading on ETFs
- Margin requirements of just 10% when using Futures on ETFs
- Profit from a Bond price fall
- Using short positions on ETFs
- Using short positions in Futures
- Invest in Bonds with reduced exchange rate risk
- An investor can reduce significantly exchange rate risk with Futures
