Asia Bond

Asia bond mutual funds and ETFs invest the majority of their assets... Asia bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of Asian countries. 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, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Governments and State-Owned Enterprises (SOEs) are the largest issuers of Asian debt. For example, in China, SOE debt is estimated to have been US$13 trillion in 2023, representing approximately 80% of the country’s GDP. Investors can purchase these funds to get both capital growth and income, and benefit from the strong growth exhibited by the continent as a whole. These funds can vary significantly in terms of risk. A fund that exclusively invests in the developed markets of Japan and Singapore is likely to be more conservative than a fund that only invests in Thailand, for instance. Last Updated: 04/25/2024 View more View less

Asia bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of Asian countries. These funds can be actively or passively managed and may seek to track... Asia bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of Asian countries. 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, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Governments and State-Owned Enterprises (SOEs) are the largest issuers of Asian debt. For example, in China, SOE debt is estimated to have been US$13 trillion in 2023, representing approximately 80% of the country’s GDP. Investors can purchase these funds to get both capital growth and income, and benefit from the strong growth exhibited by the continent as a whole. These funds can vary significantly in terms of risk. A fund that exclusively invests in the developed markets of Japan and Singapore is likely to be more conservative than a fund that only invests in Thailand, for instance. Last Updated: 04/25/2024 View more View less