International Ultrashort Bond Duration

Ultrashort international bond mutual funds and ETFs invest the majority of their... Ultrashort international bond mutual funds and ETFs invest the majority of their assets in very short-duration debt issued by governments and corporations outside of the U.S. Typically, they focus on fixed income securities that will mature in under 1 year and may hold securities from different countries, continents, or special zones (e.g. Euro Zone). This category can include mutual funds and ETFs having exposure to a wide variety of non-U.S. ultrashort-term government debt, including debt issued by municipalities and government agencies, and corporate debt of varying credit quality. Usually, investors seek exposure to different types of ultrashort-term non-U.S. bonds if they believe that in the near term international debt markets are more lucrative than the domestic market in terms of yield and safety. Ultrashort-term international bonds tend to be a more conservative investment than short, intermediate or longer-term international bonds, as their principal is less sensitive to changes in interest rates. However, if interest rates do fall, ultrashort-term non-U.S. bonds will not increase in value as much as longer-dated fixed income securities. Ultrashort-term international bonds (especially those in emerging markets) also usually come with less geopolitical risk than intermediate and longer-term bonds issued in those international markets. Last Updated: 12/27/2024 View more View less

Ultrashort international bond mutual funds and ETFs invest the majority of their assets in very short-duration debt issued by governments and corporations outside of the U.S. Typically, they focus on fixed income securities... Ultrashort international bond mutual funds and ETFs invest the majority of their assets in very short-duration debt issued by governments and corporations outside of the U.S. Typically, they focus on fixed income securities that will mature in under 1 year and may hold securities from different countries, continents, or special zones (e.g. Euro Zone). This category can include mutual funds and ETFs having exposure to a wide variety of non-U.S. ultrashort-term government debt, including debt issued by municipalities and government agencies, and corporate debt of varying credit quality. Usually, investors seek exposure to different types of ultrashort-term non-U.S. bonds if they believe that in the near term international debt markets are more lucrative than the domestic market in terms of yield and safety. Ultrashort-term international bonds tend to be a more conservative investment than short, intermediate or longer-term international bonds, as their principal is less sensitive to changes in interest rates. However, if interest rates do fall, ultrashort-term non-U.S. bonds will not increase in value as much as longer-dated fixed income securities. Ultrashort-term international bonds (especially those in emerging markets) also usually come with less geopolitical risk than intermediate and longer-term bonds issued in those international markets. Last Updated: 12/27/2024 View more View less