Australasia Bond

Australasia bond mutual funds and ETFs invest the majority of their assets... Australasia bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Australasia, which comprises Australia, New Zealand, Papua New Guinea, and Figi, as well as a number of other much smaller nations. 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 local currencies. Depending on their mandate, an Australasian 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 Australasia region, at around 48% of GDP as of 2024. Investors purchase Australasia 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 Australian government debt is likely to be more conservative than a fund that only invests in long-term bonds issued by banks in New Zealand, for example. Last Updated: 12/03/2024 View more View less

Australasia bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Australasia, which comprises Australia, New Zealand, Papua New Guinea, and Figi,... Australasia bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Australasia, which comprises Australia, New Zealand, Papua New Guinea, and Figi, as well as a number of other much smaller nations. 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 local currencies. Depending on their mandate, an Australasian 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 Australasia region, at around 48% of GDP as of 2024. Investors purchase Australasia 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 Australian government debt is likely to be more conservative than a fund that only invests in long-term bonds issued by banks in New Zealand, for example. Last Updated: 12/03/2024 View more View less