iBonds: Die Revolution der Anleihen-ETFs? (2024)

FAQs

Is there an ETF for Series I bonds? ›

The iShares iBonds Dec 2027 Term Treasury ETF seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2027. This Fund is covered by U.S. Patent Nos. 8,438,100 and 8,655,770.

When the iBonds ETF matures. iBonds ETFs terminate in December of the year in the fund's name. In the final months when the bonds in the portfolio mature, the fund's holdings transition to cash and cash equivalents.

Each iShares iBonds ETF holds a portfolio of several bonds that are aligned to a specific year, known as the "target maturity year." The target maturity year is typically displayed in the ETF's name, indicating the year in which the fund is expected to liquidate, distributing the proceeds to shareholders.

No, Vanguard Fixed Income Trading does not offer I-bonds; I-bonds are savings bonds and cannot be purchased at Vanguard.

For many investors, investing in the right bond funds can be a better option than holding a portfolio of individual bonds. Bond ETFs can provide better diversification — often for a lower cost — can offer higher liquidity, and can be easier to implement.

Further, I-bonds must be held for at least a year, so you won't be able to cash them out before a year is up if the rate plunges due to falling inflation. In fact, you'll lose the last three months of interest if you redeem them before five years are up.

Bond ETFs are affected by changing interest rates, because of the impact on the bonds in their underlying portfolios. When interest rates decrease, bond prices increase, and when interest rates rise, bond prices decline.

You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest. See Cash in (redeem) an EE or I savings bond.

iShares 20+ Year Treasury Bond ETF (TLT)

A highly popular long-term bond ETF is TLT, which tracks the 20-plus-year end of the yield curve. With a 16.6-year duration, this ETF has very high interest rate sensitivity, making it best suited for high-risk investors betting on falling rates in the near future.

Their daily transparency and the ease of tracking an index can be particularly appealing for those who value cost efficiency and operational simplicity. However, like bond funds, bond ETFs are also subject to market risk, including changes in interest rates and credit risk.

Do you pay taxes on bond ETFs? ›

Bond ETF interest payments are taxed as ordinary income.

But this money is taxable. Though often called "dividends," these interest payments aren't considered qualified dividends by the IRS, meaning they don't get the lower, qualified dividends tax rate.

Buying paper Series I savings bonds

The only way to get a paper savings bond now is to use your IRS tax refund. You can buy any amount up to $5,000 in $50 increments. We may issue multiple bonds to fill your order. The bonds may be of different denominations.

iBonds ETFs are designed to provide a yield-to-maturity ("YTM") profile comparable to that of the underlying bond portfolio. The funds seek to preserve an investor's anticipated yield-to-maturity through a combination of monthly distributions and a final end-date distribution.

"Intermediate-term bond ETFs typically invest in bonds with maturities between three and 10 years," Moss says. "They offer a balance between risk and return and are suitable for investors who have a medium-term investment horizon." A low-cost pick to watch in this category is SPIB.

I bonds' rates have since dipped from their headline-grabbing heights—they were as high as 9.62% in May of 2022—to 4.28% for the current crop. That rate may still look attractive, but I bonds' variable rates—combined with their five-year lockup period—may give you pause.