Developed Asia Pacific Bond

Developed Asia-Pacific bond mutual funds and ETFs invest the majority of their... Developed Asia-Pacific bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of developed markets in the so-called Asia-Pacific region. This includes the nations of Australia, New Zealand, South Korea, Japan, and Singapore. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in other nations’ currencies. Depending on their mandate, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. As of 2023, total sovereign debt in these five countries was around US$11.5 trillion, of which Japan accounted for nearly US$9 trillion. Investors can purchase these funds because they seek capital growth and income. They focus on developed markets in the region because these government and corporate bonds tend to be seen as more conservative investments than those issued by emerging markets in the Asia-Pacific region. They may also carry less geopolitical risk compared to their emerging market counterparts. Last Updated: 04/19/2024 View more View less

Developed Asia-Pacific bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of developed markets in the so-called Asia-Pacific region. This includes the nations of Australia, New... Developed Asia-Pacific bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of developed markets in the so-called Asia-Pacific region. This includes the nations of Australia, New Zealand, South Korea, Japan, and Singapore. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in other nations’ currencies. Depending on their mandate, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. As of 2023, total sovereign debt in these five countries was around US$11.5 trillion, of which Japan accounted for nearly US$9 trillion. Investors can purchase these funds because they seek capital growth and income. They focus on developed markets in the region because these government and corporate bonds tend to be seen as more conservative investments than those issued by emerging markets in the Asia-Pacific region. They may also carry less geopolitical risk compared to their emerging market counterparts. Last Updated: 04/19/2024 View more View less