International Corporate Bond

International (ex-U.S.) corporate bond funds and ETFs invest in debt securities issued... International (ex-U.S.) corporate bond funds and ETFs invest in debt securities issued by companies based outside the U.S. Depending on a fund’s mandate, it can be a passive or actively managed fund and it may own international corporate bonds of varying credit quality (investment-grade or high-yield), maturity (short, intermediate or long) or location (country specific, like Germany, or region specific, like Asia-Pacific). The average duration (time to maturity) of a fund’s portfolio indicates how sensitive its price will be to changes in interest rates. Investors who are concerned about the possibility of a rise in interest rates will tend to own international corporate funds and ETFs with a low duration. Meanwhile, investors who think interest rates may fall will tend to own international corporate funds and ETFs with a higher duration. Typically this type of funds attracts investors looking to diversify fixed income portion of their portfolio as they might be of the opinion that markets outside the U.S. can provide better income generating opportunities. Last Updated: 12/27/2024 View more View less

International (ex-U.S.) corporate bond funds and ETFs invest in debt securities issued by companies based outside the U.S. Depending on a fund’s mandate, it can be a passive or actively managed fund and... International (ex-U.S.) corporate bond funds and ETFs invest in debt securities issued by companies based outside the U.S. Depending on a fund’s mandate, it can be a passive or actively managed fund and it may own international corporate bonds of varying credit quality (investment-grade or high-yield), maturity (short, intermediate or long) or location (country specific, like Germany, or region specific, like Asia-Pacific). The average duration (time to maturity) of a fund’s portfolio indicates how sensitive its price will be to changes in interest rates. Investors who are concerned about the possibility of a rise in interest rates will tend to own international corporate funds and ETFs with a low duration. Meanwhile, investors who think interest rates may fall will tend to own international corporate funds and ETFs with a higher duration. Typically this type of funds attracts investors looking to diversify fixed income portion of their portfolio as they might be of the opinion that markets outside the U.S. can provide better income generating opportunities. Last Updated: 12/27/2024 View more View less