Latin America Bond

Latin America bond mutual funds and ETFs invest the majority of their... Latin America bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of countries in Latin America. This includes nations such as Argentina, Brazil, Nicaragua, Chile, Peru, and Colombia. 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, a Latin America bond mutual fund or ETF may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Governments are large issuers of debt in Latin America. Generally speaking, countries that are major exporters of commodities (such as Chile) tend to have better debt-to-GDP ratios than countries that aren’t major producers of natural resources. Investors purchase Latin America bond mutual funds and ETFs to get both capital growth and income. These funds can vary significantly in terms of risk. A fund that exclusively invests in short-term Chilean government debt will tend to be safer than a fund that invests in longer-term Argentina government bonds, for example. Last Updated: 12/27/2024 View more View less

Latin America bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of countries in Latin America. This includes nations such as Argentina, Brazil, Nicaragua, Chile, Peru,... Latin America bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of countries in Latin America. This includes nations such as Argentina, Brazil, Nicaragua, Chile, Peru, and Colombia. 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, a Latin America bond mutual fund or ETF may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Governments are large issuers of debt in Latin America. Generally speaking, countries that are major exporters of commodities (such as Chile) tend to have better debt-to-GDP ratios than countries that aren’t major producers of natural resources. Investors purchase Latin America bond mutual funds and ETFs to get both capital growth and income. These funds can vary significantly in terms of risk. A fund that exclusively invests in short-term Chilean government debt will tend to be safer than a fund that invests in longer-term Argentina government bonds, for example. Last Updated: 12/27/2024 View more View less