The iShares Core CHF Corporate Bond ETF (CH) is not a government bond ETF, but I skimmed through the first few listings and most of these companies seem quite big and stable and do not seem on the verge of defaulting on their loans.
The Weighted Avg YTM of 2.04% seems quite attractive when also taking in account the Weighted Avg Coupon of only 0.80%. If we take 20% marginal tax rate (0.16% deduction from the coupon) and 0.15%TER this would leave 1.73% nominal yield on this ETF, assuming no defaults.
Wouldn’t this be more attractive than a savings account? Am I missing something here?
The only thing coming to my mind is that the Weighted Avg Maturity is 4.55 yrs, which creates some risk in a rising interest rate environment.
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