Replacement for 1 Year Savings Bonds if Interest Rates start to fall.

Bulwark

I was wondering if anyone has a view on  iShares Core GBP Corporate Bond UCITS ETF to use instead of One year Savings Bonds if/as  interest rates fall  - or is there something better ?

Robert 

kempiejon

Bulwark said:

I was wondering if anyone has a view on  iShares Core GBP Corporate Bond UCITS ETF to use instead of One year Savings Bonds if/as  interest rates fall  - or is there something better ?

Robert 

What do you see as the features of that particular ishares product that makes it like a One year Saving Bond? You have a view on interest rates - they'll reduce, presumably in a year or why the comparison? That's more certainty than I have on rates. 
So what drew you to chose that particular corporate bond etf there are others in that marketplace I think? Why would it be nominated as similar or an alternative to what I assume is cash in a one year savings bond. Or are one year savings bonds something different?

Bulwark

I have read that they are classed low risk and have a low fee. I understand that hedging funds against currency movements can be uneconomic, so a £ Sterling fund is better. 

kempiejon

Hedging can go both ways but I see you're down on that idea - fair enough.
But you want corporate bonds as an alternative to cash savings accounts. Unless that's not what a One year Savings Bond is.