ETC Gavekal Asia Pacific Government Bond ETF
The ETC Gavekal Asia Pacific Government Bond ETF (AGOV) seeks to provide absolute positive returns through investment in the government bonds of Asian countries, predominantly in local currencies. We believe that investors are well-positioned to the potential growth for the following reasons:
US Inflation Concerns
Positive Real Rates
Asian Currency Exposure
A Case for Investing in Asian Bonds
The past couple of years have marked a sea-change for most asset allocators: since Covid, the correlation between long-dated US government bonds and US equity markets has stopped being negative. Instead of reducing risk for portfolios, long-dated US government bonds have recently been a drag on portfolio performance, even as equities struggled. This leaves investors facing a quandary: where can proper diversification be found?
Our contention is that Asian government bonds may be such a place, for a number of reasons.
