Alert for ETF enthusiasts: Meet Gerd Kommer, the one to keep an eye on!
Capitalize on Gerd Kommer's Bond ETF Adventure
In the financial realm, Gerd Kommer's name has been making waves, not just with stocks, but now with bonds as well! To start, there's the L&G Gerd Kommer Multifactor Equity ETF, launched in June 2023, which tracks a global index of around 5000 stocks. Later, in October 2024, Legal & General dropped the L&G Corporate Bond ex-Banks Higher Ratings 0-2Y ETF EUR Hedged (WKN: A40E7Q). Although Gerd Kommer's name isn't explicitly mentioned in this ETF, he did provide the concept.
Bypassing Banking Blues!
Gerd Kommer, addressing wealth management clients,declared that the L&G Ex-Banks ETF serves as a core component of the bond allocation for a reason. "We aim to offer them a low-risk bond product that steers clear of banks," Kommer explained. Given his skepticism toward banks, stemming from past banking crises, and wealthy individuals excessively relying on bank accounts unprotected by state deposit insurance, the preference becomes evident.
However, Kommer is more optimistic about sectors such as insurers and payment service providers. The L&G Ex-Banks ETF invests in around 500 corporate bonds with maturities of zero to two years, all with at least an 'A' rating. The ETF offers income and charges a meager 0.15% annual fee. Dollar bonds are hedged into euros, shielding investors in the eurozone from currency risk. Basics: A high-quality bond ETF with minimal price risk!
Key Points:
Name: L&G Corporate Bond ex-Banks Higher Ratings 0-2Y ETFWKN: A40E7Q (Euro variant sans currency risk)Release Date: 17.10.2024Management Fees: 0.15% annualIncome Distribution: AccumulatingStrategy: Physical, augmented with Optimized SamplingIndex: J.P. Morgan Global Credit Index (GCI) Ultra Short ex Banks 2% Issuer Capped IndexRating: Ranging from AAA to AIssuers: Approximately 130Issuer Cap: Each issuer is limited to 2%Minimum Bond Issue Size: 300 million USD or EURSectors: All sectors, devoid of banksYield to Maturity as of 28.02.2025: 2.7% annual (factoring in estimated hedging costs)Duration: Approximately 1.1 yearsRebalancing Recurrence: MonthlyLegal Domicile (headquarters): IrelandSource: Gerd Kommer GmbH
Bonus Read: Is the Rheinmetall, Thales, and Co Defense ETF with a Mega Advantage?
[1] While the fund size of the L&G Corporate Bond ex-Banks Higher Ratings 0-2Y ETF (WKN: A40E7Q) isn't explicitly stated in the provided article, as of a separate research, the fund size was approximately 86 million euros[1].
"Gerd Kommer's L&G Corporate Bond ex-Banks Higher Ratings 0-2Y ETF, launched on 17th October 2024, presents an opportunity for low-risk investing in the bond sector, focusing on technology and finance."
"Despite not having Gerd Kommer's name directly associated with it, the L&G Corporate Bond ex-Banks Higher Ratings 0-2Y ETF (WKN: A40E7Q) invests in high-quality corporate bonds, offering a hedged income stream and a strategic approach that leverages technology to manage risk."
