Active ETFs May Not Kill Mutual Funds Just Yet
Aaron Levitt
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Given that mutual funds work well for a variety of esoteric and hard-to-price...
Mutual funds that hold long-term bonds may be the most susceptible to rising interest rates since prices may head lower as interest rates rise. For instance, the highly rated Vanguard Long-term Corporate Bond Index Admiral Shares (VLTCX) has fallen 3.13% so far this year after gaining 16.72% in 2014, due to the prospects of rising interest rates. The fund may experience further declines if interest rates continue to rise at a higher-than-expected pace.
Short-term bond and high-yield (junk) bond mutual funds tend to perform slightly better as investors shift assets from long-term, low-yield bonds into these instruments. While they are adversely affected by rising rates, the fund flows can help increase demand and offset the price declines seen in other fixed-income asset classes. Municipal bond mutual funds may also experience less of a decline given their tax-advantaged nature.
Here are some mutual funds to consider in these areas:
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
Given that mutual funds work well for a variety of esoteric and hard-to-price...
Jayden Sangha
|
In this article, we will take a closer look at the nature of...
Kristan Wojnar, RCC™
|
Our subjects for this week center around making decisions, whether to outsource your...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...
Mutual funds that hold long-term bonds may be the most susceptible to rising interest rates since prices may head lower as interest rates rise. For instance, the highly rated Vanguard Long-term Corporate Bond Index Admiral Shares (VLTCX) has fallen 3.13% so far this year after gaining 16.72% in 2014, due to the prospects of rising interest rates. The fund may experience further declines if interest rates continue to rise at a higher-than-expected pace.
Short-term bond and high-yield (junk) bond mutual funds tend to perform slightly better as investors shift assets from long-term, low-yield bonds into these instruments. While they are adversely affected by rising rates, the fund flows can help increase demand and offset the price declines seen in other fixed-income asset classes. Municipal bond mutual funds may also experience less of a decline given their tax-advantaged nature.
Here are some mutual funds to consider in these areas:
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
Given that mutual funds work well for a variety of esoteric and hard-to-price...
Jayden Sangha
|
In this article, we will take a closer look at the nature of...
Kristan Wojnar, RCC™
|
Our subjects for this week center around making decisions, whether to outsource your...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...