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XGIG Xtrackers Global Inflation Linked Bonds
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Chris Cooksey
Posted: 21 August 2023 09:36:14(UTC)
#1

Joined: 09/05/2023(UTC)
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HL is showing the dividend yield on Xtrackers II Global Inflation Linked Bond ETF as 0.75%. Is this a 12 month trailing yield perhaps? Seems very low. Thanks!
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Thrugelmir
Posted: 21 August 2023 10:04:01(UTC)
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Will be a historic trailing yield. Likewise the era of QE has meant that bonds were issued with low coupon rates.
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Chris Cooksey on 21/08/2023(UTC), Tim D on 21/08/2023(UTC)
Chris Cooksey
Posted: 21 August 2023 10:27:31(UTC)
#3

Joined: 09/05/2023(UTC)
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Cheers… I presume the dividend yield will go up as holdings are constantly updated.
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SF100
Posted: 21 August 2023 10:46:19(UTC)
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I could be wrong, and probably am,
but I'm not sure people buy IL bonds primarily for their coupon income,
but for the inflated linked capital growth instead.

For Info
There are only 33 UK IL Gilts on the market.
Only 3 of them have coupons > 1.25%
(2%, 2% & 4.25%)
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Tim D on 21/08/2023(UTC), dlp6666 on 22/08/2023(UTC)
Thrugelmir
Posted: 21 August 2023 10:56:39(UTC)
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Chris Cooksey;277010 wrote:
Cheers… I presume the dividend yield will go up as holdings are constantly updated.


Factsheet here

https://etf.dws.com/en-g...8e670c1a2/Factsheet.pdf

Yield to maturity as at 31st July a little under 4%.

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Tim D on 21/08/2023(UTC), Chris Cooksey on 21/08/2023(UTC)
Chris Cooksey
Posted: 21 August 2023 11:14:29(UTC)
#7

Joined: 09/05/2023(UTC)
Posts: 39
SF100;277011 wrote:
I could be wrong, and probably am,
but I'm not sure people buy IL bonds primarily for their coupon income,
but for the inflated linked capital growth instead.

For Info
There are only 33 UK IL Gilts on the market.
Only 3 of them have coupons > 1.25%
(2%, 2% & 4.25%)

That’s what I assumed but their terrible performance over the past year led me to believe that they are 95% conventional bonds and only 5% inflation linked.
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Thrugelmir
Posted: 21 August 2023 11:23:49(UTC)
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Chris Cooksey;277015 wrote:
SF100;277011 wrote:
I could be wrong, and probably am,
but I'm not sure people buy IL bonds primarily for their coupon income,
but for the inflated linked capital growth instead.

For Info
There are only 33 UK IL Gilts on the market.
Only 3 of them have coupons > 1.25%
(2%, 2% & 4.25%)

That’s what I assumed but their terrible performance over the past year led me to believe that they are 95% conventional bonds and only 5% inflation linked.


The fact that the projected yield is still only 4%. Shows how elevated asset prices were driven in a near zero interest rate environment. Illustrated by the sharp return to what , by some, is regarded as nearer normality.
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Chris Cooksey on 21/08/2023(UTC)
SF100
Posted: 21 August 2023 13:07:12(UTC)
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Thrugelmir;277013 wrote:
Chris Cooksey;277010 wrote:
Cheers… I presume the dividend yield will go up as holdings are constantly updated.


Factsheet here

https://etf.dws.com/en-g...8e670c1a2/Factsheet.pdf

Yield to maturity as at 31st July a little under 4%.


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