Middle East Bond

Middle East bond mutual funds and ETFs invest the majority of their... Middle East bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of countries in the Middle East. This includes nations such as Saudi Arabia, Kuwait, Qatar, Iran, Iraq, the United Arab Emirates, Egypt, Turkey, and Israel. 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 Middle East 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 the Middle East. Generally speaking, countries that import oil (such as Lebanon) tend to have higher government debt to GDP ratios than nations which export oil (such as Kuwait). Investors purchase Middle East 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 Kuwaiti government debt will tend to be safer than a fund that invests in longer-term Lebanese government bonds, for example. Last Updated: 12/27/2024 View more View less

Middle East bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of countries in the Middle East. This includes nations such as Saudi Arabia, Kuwait, Qatar,... Middle East bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of countries in the Middle East. This includes nations such as Saudi Arabia, Kuwait, Qatar, Iran, Iraq, the United Arab Emirates, Egypt, Turkey, and Israel. 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 Middle East 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 the Middle East. Generally speaking, countries that import oil (such as Lebanon) tend to have higher government debt to GDP ratios than nations which export oil (such as Kuwait). Investors purchase Middle East 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 Kuwaiti government debt will tend to be safer than a fund that invests in longer-term Lebanese government bonds, for example. Last Updated: 12/27/2024 View more View less