Context: EU citizen (Eurozone , if it matters, and non-native English), plus in full disclosure, it could very well be that I've grossly misunderstood some(many) things.
I am looking into learning how I could invest some money (by most standards an insignificant amount, at most 1K) in US Treasury bonds as from what I understand, it is considered to be relatively safe and does not demand extensive knowledge and active engagement.
I reached out to local banking institutions in my country but the baseline amounts they are considering for bond investors are 10K and upwards. Such an amount is out of reach for me, especially for something I do not (at least, yet,) understand.
I do have an account though with a broker that allows me to buy into ETFs that invest in US Treasury bonds.
So, I've been looking at the following ETF (Vanguard USD Treasury Bond UCITS ETF, (USD) ACCUMULATING, ISIN: IE00BGYWFS63)
I understand accumulating to be meaning that dividends/earnings are re-invested instead of being distributed to holders.
I am confused about how buying shares of the above ETF would work and how its accumulating nature plays out with the value of the ETF share I would have in my hands. In other words, how does the accumulating nature help me as the one that holds the ETF share(does the share price increase somehow, do I get something back when the fund matures/expires - don't know the right word to put here)
Again, apologies for the naivety, any help or pointer to relevant material that explains this is greatly appreciated!
Cheers!
Submitted November 09, 2022 at 04:50AM by RelevantGrant6595 https://ift.tt/VtGHKj6
