What Are Bond ETFs, and Can I Invest in Them on Pluang?
A bond ETF is a fund that holds many bonds, such as US Treasuries or corporate bonds, and Pluang lets you trade US-listed bond ETFs like SGOV, TLT, AGG and LQD in USD. US Stocks and ETFs on Pluang are facilitated by PT PG Berjangka, a Financial Derivatives Trading Intermediary for derivative products with securities as the underlying asset, licensed and supervised by OJK. A bond ETF's price moves opposite to interest rates: when rates rise, bond prices tend to fall, and funds holding longer-dated bonds move the most. Most bond ETFs pay out the interest they collect as regular distributions.
Bond ETFs on Pluang by category
| Category | Examples on Pluang | What it holds | Main sensitivity |
|---|---|---|---|
| Very short US Treasuries | SGOV | Treasury bills maturing within 3 months | Little price movement when rates change |
| Short US Treasuries | SHY | Treasuries maturing in 1 to 3 years | Small moves when rates change |
| Intermediate US Treasuries | IEI, IEF | Treasuries maturing in 3 to 7 and 7 to 10 years | Moderate moves when rates change |
| Long US Treasuries | TLH, TLT | Treasuries maturing in 10 to 20 and over 20 years | Large moves when rates change |
| Inflation-protected | TIP | Treasury Inflation-Protected Securities | Changes in real interest rates |
| Corporate, investment grade | LQD, VCIT, VCSH, USIG | Bonds from higher-rated companies | Interest rates plus company credit risk |
| Corporate, high yield | HYG, JNK | Bonds from lower-rated companies | Higher credit risk |
| Broad US bond market | AGG, BND | A mix of Treasury, corporate and mortgage bonds | Moderate moves when rates change |
| Outside the US | BNDX, IGOV, EMB, EMLC | International and emerging-market bonds | Rates, credit and, for local-currency funds such as EMLC, currency risk |
The list in the app can change, so search the ticker in US Stocks to see what is available. On Pluang, a bond ETF position is a derivative contract through PT PG Berjangka that follows the ETF's price, traded like any other US Stock or ETF with the regular US Stocks fees.
How distributions are paid
Distributions from a bond ETF are paid like other US dividends: they are credited to your USD balance after US withholding tax of 15% on non-leveraged positions or 30% on 2x leveraged positions. To be eligible, you need to hold the ETF on or before its cum date.
Learn more: what moves the US Treasury yield and US Stocks fees on Pluang.
Related questions:
Q: Do bond ETFs pay dividends on Pluang?
Most do. A bond ETF passes on the interest it collects as regular distributions, often monthly. On Pluang they arrive in your USD balance after withholding tax of 15% on non-leveraged positions or 30% on 2x leveraged positions.
Q: Is a bond ETF the same as buying a bond?
Not quite. A single bond repays its face value on a set maturity date. Most bond ETFs keep replacing maturing bonds with new ones, so the fund has no maturity date and its price keeps moving with interest rates.
Q: Why do bond ETF prices fall when interest rates rise?
Newly issued bonds pay the higher rate, so existing bonds paying less become worth less. The fund's price reflects the lower value of the bonds it holds.
Q: What is duration risk?
Duration measures how much a bond fund's price moves when interest rates change. The longer the bonds a fund holds, the higher its duration, so a long Treasury ETF such as TLT moves much more than a short one such as SHY.
Last updated: 6 November 2026