XTB CIO Ian Martin spoke to Ticky Fullerton on Sky Business about the benefits of corporate bonds in your portfolio and how XTB portfolios have outperformed bond indices by 175%.
When asked how XTB portfolios outperformed both the composite and credit indices, Martin explained that XTB portfolios are comprised of a concentrated number of high yielding bonds with an average life of 3 -5 years. The Composite Index, on the other hand, is made of up over 80% government and semi government bonds which include bonds with maturities up to 30 years.
Fullerton on XTBs: ‘almost too good to be true’.
Commenting that XTBs sound ‘almost too good to be true’, Fullerton asked Martin to expand on the risks associated with XTBs, namely liquidity.
He explained that because XTBs are effectively ETF-style instruments there are 2 Market Makers providing prices continuously on ASX.
Now all investors can see XTB prices throughout the ASX trading day and access a market that was previously restricted to wholesale or sophisticated investors.