International Government Bond

International government bond mutual funds and ETFs invest the majority of their... International government bond mutual funds and ETFs invest the majority of their assets in government debt securities issued by countries other than the United States. The proceeds from foreign debt issuances are used to fund government services and programs. Investors considering exposure to non-U.S. fixed income securities have many options to choose from in terms of geography (e.g. emerging markets, frontier markets, single country focus like China or special regions like Euro Zone), duration (i.e. short, intermediate and long-term), and strategy (e.g. currency-hedged, local currency denominated, inflation-protected, or sector-focus). Conservative investors will tend to prefer international government debt issued by developed market economies (eg. Germany) with low risks of default and a history of meeting their obligations to creditors. Meanwhile, more aggressive fixed income investors may consider exposure to debt from emerging (eg. Brazil, China, India) or frontier (eg. Vietnam, Bahrain) markets as they tend to pay a higher interest rate compared to developed market debt because of a relatively higher risk of default. Last Updated: 11/04/2024 View more View less

International government bond mutual funds and ETFs invest the majority of their assets in government debt securities issued by countries other than the United States. The proceeds from foreign debt issuances are used... International government bond mutual funds and ETFs invest the majority of their assets in government debt securities issued by countries other than the United States. The proceeds from foreign debt issuances are used to fund government services and programs. Investors considering exposure to non-U.S. fixed income securities have many options to choose from in terms of geography (e.g. emerging markets, frontier markets, single country focus like China or special regions like Euro Zone), duration (i.e. short, intermediate and long-term), and strategy (e.g. currency-hedged, local currency denominated, inflation-protected, or sector-focus). Conservative investors will tend to prefer international government debt issued by developed market economies (eg. Germany) with low risks of default and a history of meeting their obligations to creditors. Meanwhile, more aggressive fixed income investors may consider exposure to debt from emerging (eg. Brazil, China, India) or frontier (eg. Vietnam, Bahrain) markets as they tend to pay a higher interest rate compared to developed market debt because of a relatively higher risk of default. Last Updated: 11/04/2024 View more View less