New Zealand Bond

New Zealand bond mutual funds and ETFs invest the majority of their... New Zealand bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in New Zealand. 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 New Zealand dollar. Depending on their mandate, a New Zealand bond mutual fund or ETF may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Government is the largest issuer of debt, by far, in New Zealand, at around 47% of GDP as of 2024. Investors purchase New Zealand 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 New Zealand government debt is likely to be more conservative than a fund that only invests in high-yield corporate debt, for example. Last Updated: 12/27/2024 View more View less

New Zealand bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in New Zealand. These funds can be actively or passively managed... New Zealand bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in New Zealand. 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 New Zealand dollar. Depending on their mandate, a New Zealand bond mutual fund or ETF may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Government is the largest issuer of debt, by far, in New Zealand, at around 47% of GDP as of 2024. Investors purchase New Zealand 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 New Zealand government debt is likely to be more conservative than a fund that only invests in high-yield corporate debt, for example. Last Updated: 12/27/2024 View more View less