GGB.NZ

The Smart Global Government Bond ETF (GGB.NZ), listed on the New Zealand Stock Exchange, does not currently pay dividends. This is typical for bond-focused ETFs, which often reinvest income to enhance total returns rather than distribute it as dividends. By reinvesting, the ETF aims to compound returns over time, potentially offering investors a more substantial long-term growth opportunity. This strategy aligns with the nature of government bonds, which are generally considered lower-risk investments and often appeal to those seeking stability rather than immediate income. For income-focused or retired investors, the lack of dividends might be a drawback. However, the ETF could still be appealing as part of a diversified portfolio, providing a balance of safety and modest growth potential. Its focus on global government bonds may offer geographical diversification and a hedge against market volatility, making it a suitable option for those prioritizing capital preservation and gradual growth over regular income.