Developed Europe Bond

Developed Europe bond mutual Funds and ETFs invest the majority of their... Developed Europe bond mutual Funds and ETFs invest the majority of their assets in the government and corporate debt of developed European countries. Developed countries in Europe include nations such as Germany, Sweden, Denmark, the Netherlands, and the United Kingdom. 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, Developed Europe bond mutual Funds and ETFs may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Governments are major issuers of bonds in Developed Europe. In Germany, for example, government debt is 66% of GDP as 2022, equal to US$2.5 trillion. Corporations are not far behind, however. For instance, the total corporate debt in Germany was US$1.8 trillion as of 2022. Investors purchase these to get both capital growth and income. The risk of each fund will vary, depending on the type and duration of the bonds they own. Last Updated: 04/24/2024 View more View less

Developed Europe bond mutual Funds and ETFs invest the majority of their assets in the government and corporate debt of developed European countries. Developed countries in Europe include nations such as Germany, Sweden,... Developed Europe bond mutual Funds and ETFs invest the majority of their assets in the government and corporate debt of developed European countries. Developed countries in Europe include nations such as Germany, Sweden, Denmark, the Netherlands, and the United Kingdom. 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, Developed Europe bond mutual Funds and ETFs may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Governments are major issuers of bonds in Developed Europe. In Germany, for example, government debt is 66% of GDP as 2022, equal to US$2.5 trillion. Corporations are not far behind, however. For instance, the total corporate debt in Germany was US$1.8 trillion as of 2022. Investors purchase these to get both capital growth and income. The risk of each fund will vary, depending on the type and duration of the bonds they own. Last Updated: 04/24/2024 View more View less