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Top 10 Global Government Bond ETFs

Stocks in this article: AUD AUNZ BUNL EMLC ITIP WIP ISHG IGOV BWZ BWX

#5: SPDR DB International Government Inflation Protected Bond ETF (WIP)

WIP follows the DB Global Government ex-US Inflation-Linked Bond Capped Index measures the total return performance of inflation-linked government bonds from developed and emerging market countries outside of the United States. The fund was launched in March 2008.

AUM equal $1.2 billion and average daily trading volume is 129K shares. As of late January 2012 the annual dividend yield was 4.64% and YTD return 2.04%. The one year return was 4.79%.

Data as of First Quarter 2012

WIP Top Ten Holdings & Weightings

  1. Japan(Govt Of) 1.0857%: 4.64%
  2. Italy(Rep Of) 2.6%: 4.21%
  3. France(Govt Of) 2.56835%: 4.16%
  4. United Kingdom (Government Of) 1.44962%: 3.97%
  5. France(Govt Of) 1.07943%: 3.51%
  6. United Kingdom (Government Of) 2.05188%: 3.36%
  7. France(Govt Of) 1.78968%: 2.87%
  8. Turkey(Rep Of) 9.86678%: 2.82%
  9. United Kingdom (Government Of) 6.827%: 2.68%
  10. Republic Of South Africa: 2.53%

#4: iShares 1-3 Year International Treasury Bond ETF (ISHG)

ISHG follows the S&P/Citigroup International Treasury Bond Index ex-U.S. 1-3 Year which is designed to measure the performance of treasury bonds issued in local currencies by developed market countries outside the U.S. with a maturity of 1-3 years. The fund was launched in January 2009. The expense ratio is .35%.

AUM equal $164 million and average daily trading volume is 13K shares. As of late January 2012 the annual dividend yield was 4.52% and YTD return 1.73%. The one year return was -1.15%.

Data as of First Quarter 2012

ISHG Top Ten Holdings & Weightings

  1. Japan (2 Year Issue) Sr Unsecured 08/13 0.2: 5.43%
  2. Japan (2 Year Issue) Sr Unsecured 10/13 0.1: 5.42%
  3. Japan 27(20 Year Issue) Sr Unsecured 09/14 5.: 3.91%
  4. Italy(Rep Of) 4.75%: 3.28%
  5. Bundesrepub. Deutschland Bonds 07/14 4.25: 2.98%
  6. Japan(Govt Of) 0.6%: 2.88%
  7. Netherlands (Kingdom of) 4.25%: 2.73%
  8. United Kingdom (Government Of) 2.25%: 2.58%
  9. Buoni Poliennali Del Tes Bonds 11/13 2.25: 2.29%
  10. Ireland(Rep Of) 4%: 2.11%

#3: iShares S&P Citigroup International Treasury ETF (IGOV)

IGOV follows the S&P Citigroup International Treasury Bond Index ex-U.S. which includes Treasury bonds issued in local currencies. The fund was launched January 2009. The expense ratio is .35%. AUM equal $293 million and averaged daily trading volume is 27K shares. As of the end of January 2012 the annual dividend yield was 4.14% and YTD return -3.09%. The one year return was -.83%. More disappointing results were due to more exposure to the eurozone than BWX for example.

Data as of First Quarter 2012

IGOV Top Ten Holdings & Weightings

  1. Japan(Govt Of) 1.5%: 4.80%
  2. Japan(Govt Of) 2.2%: 4.52%
  3. Japan(Govt Of) 1.5%: 3.08%
  4. Germany (Federal Republic Of) 4.25%: 2.85%
  5. Netherlands (Kingdom of) 3.75%: 2.72%
  6. Austria(Rep Of) 3.4%: 2.23%
  7. Belgium(Kingdom) 3.25%: 2.19%
  8. Buoni Poliennali Del Tes Bonds 02/20 4.5: 2.17%
  9. Germany (Federal Republic Of) 4.75%: 1.88%
  10. United Kingdom (Government Of) 4.75%: 1.76%

#2: SPDR Short-Term International Treasury ETF (BWZ)

BWZ follows the Barclays Capital 1-3 Year Global Treasury Ex-US Capped Index which includes government bonds issued by investment-grade countries outside the United States, in local currencies, that have a remaining maturity of one to three years and are rated investment grade. The fund was launched in January 2009. AUM equal $219 million and average daily trading volume is 32K shares. As of late January 2012 the annual dividend yield was 3.50% and YTD return 1.94%. The one year return was 1.25%.

Data as of First Quarter 2012

BWZ Top Ten Holdings & Weightings

  1. Sweden(Kingdom Of) 6.75%: 2.44%
  2. United Kingdom (Government Of) 2.25%: 2.37%
  3. Japan 85 (5 Year Issue) Sr Unsecured 09/14 0.7: 2.24%
  4. Mexico(Utd Mex St) 8%: 2.18%
  5. Japan 84 (5 Year Issue) Sr Unsecured 06/14 0.7: 2.14%
  6. Sth Africa(Rep Of) 7.5%: 2.14%
  7. Germany (Federal Republic Of) 4%: 2.03%
  8. Germany (Federal Republic Of) 3.75%: 1.98%
  9. Japan(Govt Of) 1%: 1.91%
  10. Bundesrepub. Deutschland Bonds 07/14 4.25: 1.80%

#1: SPDR International Treasury Bond ETF (BWX)

BWX follows the Barclays Capital Global Treasury Ex-US Capped Index which includes government bonds issued by investment-grade countries outside the United States, in local currencies, that have a remaining maturity of one year or more and are rated investment grade.

 

The fund was launched in October 2007. The expense ratio is .50%. AUM equal $1.7 billion and average daily trading volume is 206K shares. As of late January 2012 the annual dividend yield was 3.35% and YTD return .68%. The one year return was 5.45%

.

Data as of First Quarter 2012

BWX Top Ten Holdings & Weightings

  1. Japan(Govt Of) 1.5%: 2.30%
  2. Japan(Govt Of) 2.3%: 2.00%
  3. Japan(Govt Of) 2.9%: 1.50%
  4. Japan(Govt Of) 2.6%: 1.16%
  5. Japan(Govt Of) 1.4%: 0.74%
  6. Denmark(Kingdom) 4.5%: 0.69%
  7. Japan(Govt Of) 1.9%: 0.69%
  8. Denmark(Kingdom) 4%: 0.68%
  9. Japan(Govt Of) 1.7%: 0.64%
  10. Japan 312 (10 Yr Issue) Sr Unsecured 12/20 1.2: 0.64%

This is a sector that should gain investor attention now and in the future. The eurozone dominates headlines with debt problems causing more volatility in the sector in the near to intermediate term. Meanwhile new entrants like EMLC, AUNZ and AUD will capture more attention given more attractive yields and fewer headline issues like we see from the eurozone. Some of the latter need more seasoning from a technical view but then longer index data is available for analysis but not from the charts we have available for posting at this time.

It's also important to remember that ETF sponsors have their own competitive business interests when issuing products which may not necessarily align with your investment needs. New ETFs from

For further information about portfolio structures using technical indicators like DeMark and other indicators, take a free 14-day trial at ETF Digest . Follow us on Twitter and Facebook as well and join our group conversations.

 

You may address any feedback to: feedback@etfdigest.com   

The ETF Digest maintains positions for Lazy and Active portfolios in BWX, AUNZ and EMLC.

( Source for data is from ETF sponsors and various ETF data providers)

 

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Dave Fry is founder and publisher of ETF Digest, Dave's Daily blog and the best-selling book author of Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management, published by Wiley Finance in 2008. A detailed bio is here: Dave Fry.

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