International Government Bond ETFs
Just like government bond ETF’s reflect the value of treasury securities, international government bond ETF’s reflect the ups and downs of international government bonds. These ETF’s are available for investors to consider if they want the security of a government bond, but for some reason do not want to invest domestically. For the most part, these ETF’s are available for purchase in the bond-issuing country’s currency. This introduces a new element to the ETF, as its value will rise or fall based on the exchange rate of the foreign currency and the dollar. Thus, these ETF’s can also be bought as a play by an investor who thinks the value of the dollar is going to decline compared to the foreign currency.
