Mexico Bond

Mexico bond mutual funds and ETFs invest the majority of their assets... Mexico bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Mexico. 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 the Mexican Peso. Depending on their mandate, a Mexico 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 the largest issuers of debt in Mexico, at 55% of GDP as of 2024. Nonfinancial corporations, meanwhile, had outstanding debt to the tune of 23% of GDP as of 2022. Investors purchase Mexico 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 Mexican federal government debt is likely to be more conservative than a fund that only invests in high-yield corporate debt, for example. Last Updated: 11/27/2024 View more View less

Mexico bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Mexico. These funds can be actively or passively managed and may... Mexico bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Mexico. 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 the Mexican Peso. Depending on their mandate, a Mexico 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 the largest issuers of debt in Mexico, at 55% of GDP as of 2024. Nonfinancial corporations, meanwhile, had outstanding debt to the tune of 23% of GDP as of 2022. Investors purchase Mexico 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 Mexican federal government debt is likely to be more conservative than a fund that only invests in high-yield corporate debt, for example. Last Updated: 11/27/2024 View more View less