Australia Bond

Australia bond mutual funds and ETFs invest the majority of their assets... Australia bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Australia. 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 the Australian Dollar. Depending on their mandate, an Australia 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 Australia, at around 49% of GDP as of 2024. Investors purchase Australia 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 owns long-term debt issued by property developers and banks, for example. Last Updated: 12/03/2024 View more View less

Australia bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Australia. These funds can be actively or passively managed and may... Australia bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of governments and corporations in Australia. 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 the Australian Dollar. Depending on their mandate, an Australia 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 Australia, at around 49% of GDP as of 2024. Investors purchase Australia 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 owns long-term debt issued by property developers and banks, for example. Last Updated: 12/03/2024 View more View less