International Short-Term Bond Duration

Short-term international bond mutual funds and ETFs invest majority of their assets... Short-term international bond mutual funds and ETFs invest majority of their assets in short-duration debt issued by governments and corporations outside of the U.S. Typically, they focus on fixed income securities that will mature in 3 years or less and may hold securities from different countries, continents, or special zones (e.g. Euro Zone). This category can include mutual funds and ETFs having exposure to a wide variety of non-U.S. short-term government debt, including debt issued by municipalities and government agencies, and corporate debt of varying credit quality. Usually, investors seek exposure to different types of short-term non-U.S. bonds if they believe that in the short term international debt markets are more lucrative than the domestic market in terms of yield and safety. Short-term international bonds tend to be a more conservative investment vehicle than intermediate or longer-term international bonds, as their principal is less sensitive to changes in interest rates. However, if interest rates do fall, short-term non-U.S. bonds will not increase in value as much as longer-dated bonds. Short-term international bonds (especially those in emerging markets) also usually come with less geopolitical risk than intermediate and longer-term bonds issued in those international markets. Last Updated: 05/09/2024 View more View less

Short-term international bond mutual funds and ETFs invest majority of their assets in short-duration debt issued by governments and corporations outside of the U.S. Typically, they focus on fixed income securities that will... Short-term international bond mutual funds and ETFs invest majority of their assets in short-duration debt issued by governments and corporations outside of the U.S. Typically, they focus on fixed income securities that will mature in 3 years or less and may hold securities from different countries, continents, or special zones (e.g. Euro Zone). This category can include mutual funds and ETFs having exposure to a wide variety of non-U.S. short-term government debt, including debt issued by municipalities and government agencies, and corporate debt of varying credit quality. Usually, investors seek exposure to different types of short-term non-U.S. bonds if they believe that in the short term international debt markets are more lucrative than the domestic market in terms of yield and safety. Short-term international bonds tend to be a more conservative investment vehicle than intermediate or longer-term international bonds, as their principal is less sensitive to changes in interest rates. However, if interest rates do fall, short-term non-U.S. bonds will not increase in value as much as longer-dated bonds. Short-term international bonds (especially those in emerging markets) also usually come with less geopolitical risk than intermediate and longer-term bonds issued in those international markets. Last Updated: 05/09/2024 View more View less