Ex-Euro Zone Bond

Ex-Euro-Zone bond mutual Funds and ETFs invest the majority of their assets... Ex-Euro-Zone bond mutual Funds and ETFs invest the majority of their assets in government and corporate debt of countries in the European Union but outside the Euro-Zone. These are the countries in the EU that don’t use the Euro as their currency. There are 7 of these countries, including Bulgaria, Croatia, Czechia, Hungary, Poland, Romania, and Sweden. 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, Ex-Euro-Zone 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 tend to be the largest issuers of bonds in the Ex-Euro-Zone. In Poland, for instance, government debt was equal to just over 50% of GDP as of 2023. Investors purchase these funds to get both capital growth and income. The risk of each fund will vary, depending on the type and duration of the bonds. Last Updated: 04/25/2024 View more View less

Ex-Euro-Zone bond mutual Funds and ETFs invest the majority of their assets in government and corporate debt of countries in the European Union but outside the Euro-Zone. These are the countries in the... Ex-Euro-Zone bond mutual Funds and ETFs invest the majority of their assets in government and corporate debt of countries in the European Union but outside the Euro-Zone. These are the countries in the EU that don’t use the Euro as their currency. There are 7 of these countries, including Bulgaria, Croatia, Czechia, Hungary, Poland, Romania, and Sweden. 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, Ex-Euro-Zone 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 tend to be the largest issuers of bonds in the Ex-Euro-Zone. In Poland, for instance, government debt was equal to just over 50% of GDP as of 2023. Investors purchase these funds to get both capital growth and income. The risk of each fund will vary, depending on the type and duration of the bonds. Last Updated: 04/25/2024 View more View less