U.S. Intermediate-Term Bond Duration

Intermediate-term U.S. bond mutual funds and ETFs invest the majority of their... Intermediate-term U.S. bond mutual funds and ETFs invest the majority of their assets in intermediate-duration debt issued by governments and corporations in the U.S. These funds concentrate on debt securities that will mature approximately 3 to 6 years from now. This category can include mutual funds and ETFs having exposure to intermediate-term government debt, which could be issued either by the U.S. Department of the Treasury (eg. Treasury Notes) or by government-sponsored agencies such as Fannie Mae. Intermmediate-term municipal bond based mutual funds and ETFs, which include debt issued by different U.S. states and local governments, can be part of this category. Additionally, mutual funds and ETFs investing in intermediate-term U.S. corporate bonds of various credit qualities can be also included in this category. Investors often seek exposure to intermediate-term U.S. bonds if they believe that interest rates will fall, as intermediate duration debt is more sensitive to changes in interest rates than short-term debt. However, it’s not as sensitive to changes in interest rates as long duration debt, so if rates actually rise, an investor in intermediate bonds won’t lose as much money. Last Updated: 01/17/2025 View more View less

Intermediate-term U.S. bond mutual funds and ETFs invest the majority of their assets in intermediate-duration debt issued by governments and corporations in the U.S. These funds concentrate on debt securities that will mature... Intermediate-term U.S. bond mutual funds and ETFs invest the majority of their assets in intermediate-duration debt issued by governments and corporations in the U.S. These funds concentrate on debt securities that will mature approximately 3 to 6 years from now. This category can include mutual funds and ETFs having exposure to intermediate-term government debt, which could be issued either by the U.S. Department of the Treasury (eg. Treasury Notes) or by government-sponsored agencies such as Fannie Mae. Intermmediate-term municipal bond based mutual funds and ETFs, which include debt issued by different U.S. states and local governments, can be part of this category. Additionally, mutual funds and ETFs investing in intermediate-term U.S. corporate bonds of various credit qualities can be also included in this category. Investors often seek exposure to intermediate-term U.S. bonds if they believe that interest rates will fall, as intermediate duration debt is more sensitive to changes in interest rates than short-term debt. However, it’s not as sensitive to changes in interest rates as long duration debt, so if rates actually rise, an investor in intermediate bonds won’t lose as much money. Last Updated: 01/17/2025 View more View less