International Long-Term Bond Duration

Long-term international bond mutual funds and ETFs invest the majority of their... Long-term international bond mutual funds and ETFs invest the majority of their assets in long-duration debt issued by governments and corporations outside of the U.S. Typically, they focus on fixed income securities that will mature over 6 years from now and may hold securities from different countries, continents, or special zones (eg. Euro Zone). This category can include mutual funds and ETFs having exposure to a wide variety of non-U.S long-term government debt, including debt issued by municipalities and government agencies, and corporate debt of varying credit quality. Usually, investors often seek exposure to different types of long-term non-U.S. bonds if they believe that in the long run international debt markets are more lucrative than the domestic market in terms of yield and safety. However, investors should be aware that longer-term international debt would be more sensitive to changes in interest rates, compared to intermediate-term or short-term international or domestic debt. Additionally, given their longer tenure, these funds could incur higher geopolitical risk compared to U.S. based long-term bond funds, if the economic or political situation of a specific country or region deteriorates in comparison to the U.S. Last Updated: 12/27/2024 View more View less

Long-term international bond mutual funds and ETFs invest the majority of their assets in long-duration debt issued by governments and corporations outside of the U.S. Typically, they focus on fixed income securities that... Long-term international bond mutual funds and ETFs invest the majority of their assets in long-duration debt issued by governments and corporations outside of the U.S. Typically, they focus on fixed income securities that will mature over 6 years from now and may hold securities from different countries, continents, or special zones (eg. Euro Zone). This category can include mutual funds and ETFs having exposure to a wide variety of non-U.S long-term government debt, including debt issued by municipalities and government agencies, and corporate debt of varying credit quality. Usually, investors often seek exposure to different types of long-term non-U.S. bonds if they believe that in the long run international debt markets are more lucrative than the domestic market in terms of yield and safety. However, investors should be aware that longer-term international debt would be more sensitive to changes in interest rates, compared to intermediate-term or short-term international or domestic debt. Additionally, given their longer tenure, these funds could incur higher geopolitical risk compared to U.S. based long-term bond funds, if the economic or political situation of a specific country or region deteriorates in comparison to the U.S. Last Updated: 12/27/2024 View more View less