International Bond Duration

International bond mutual funds and ETFs own non-U.S. fixed income securities of... International bond mutual funds and ETFs own non-U.S. fixed income securities of varying duration, which measures a bond's likely price change due to a change in interest rates. Fixed income securities held by these mutual funds and ETFs can be either issued by different governments or corporation and they can be issued in different countries, continents, or special zones (eg. Euro Zone). Ultra-short duration international bond mutual funds and ETFs invest the majority of their assets in debt securities maturing in less than 1 year (and often, only a few months). Short duration international bond mutual funds and ETFs typically invest the majority of their assets in debt securities maturing between 1 and 3 years. Intermediate duration international bond mutual funds and ETFs typically invest the majority of their assets in debt securities maturing in 3 to 6 years. Long duration international bond mutual funds and ETFs usually invest the majority of their assets in debt securities that will mature over 6 years from now. U.S. investors who look to diversify their fixed income holdings outside of their home country typically invest in international bonds. Typically, longer duration debt is more sensitive to changes in interest rates compared to shorter duration debt. Last Updated: 12/27/2024 View more View less

International bond mutual funds and ETFs own non-U.S. fixed income securities of varying duration, which measures a bond's likely price change due to a change in interest rates. Fixed income securities held by... International bond mutual funds and ETFs own non-U.S. fixed income securities of varying duration, which measures a bond's likely price change due to a change in interest rates. Fixed income securities held by these mutual funds and ETFs can be either issued by different governments or corporation and they can be issued in different countries, continents, or special zones (eg. Euro Zone). Ultra-short duration international bond mutual funds and ETFs invest the majority of their assets in debt securities maturing in less than 1 year (and often, only a few months). Short duration international bond mutual funds and ETFs typically invest the majority of their assets in debt securities maturing between 1 and 3 years. Intermediate duration international bond mutual funds and ETFs typically invest the majority of their assets in debt securities maturing in 3 to 6 years. Long duration international bond mutual funds and ETFs usually invest the majority of their assets in debt securities that will mature over 6 years from now. U.S. investors who look to diversify their fixed income holdings outside of their home country typically invest in international bonds. Typically, longer duration debt is more sensitive to changes in interest rates compared to shorter duration debt. Last Updated: 12/27/2024 View more View less