Global X USD Corporate Bond ETF Seeks Returns in Low-Yield Environment

The Global X USD Corporate Bond (Currency Hedged) ETF (ASX: USIG) is a fund that provides Australian investors with exposure to a diversified portfolio of US dollar-denominated corporate bonds, while hedging currency fluctuations back to Australian dollars.

The long-term growth drivers for this fund include demand for income-oriented assets in a low-yield environment, diversification benefits from international credit markets, and potential yield differentials between US and Australian fixed income that could support returns.

However, the principal investment risks associated with this fund are interest-rate sensitivity and credit risk in the underlying corporate bonds together with hedging and counterparty risk from maintaining AUD currency coverage.