Euro Zone Bond

Euro-Zone bond mutual Funds and ETFs invest the majority of their assets... Euro-Zone bond mutual Funds and ETFs invest the majority of their assets in government and corporate debt of countries in the Euro-Zone. This includes the nations of Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Countries in the Euro-Zone use the Euro as their currency. 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, Euro-Zone bond mutual Funds and ETFs may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Governments in the Euro-Zone are the largest issuers of bonds, followed by corporations. For instance, the European Central Bank can be a significant buyer of these bonds, especially when they are trying to pursue a quantitative easing policy. Investors purchase these funds to get both capital growth and income. The risk of each fund will vary, in part due to the duration of the bonds they own, as well as whether they focus on developed Europe or emerging Europe. Last Updated: 04/19/2024 View more View less

Euro-Zone bond mutual Funds and ETFs invest the majority of their assets in government and corporate debt of countries in the Euro-Zone. This includes the nations of Austria, Belgium, Croatia, Cyprus, Estonia, Finland,... Euro-Zone bond mutual Funds and ETFs invest the majority of their assets in government and corporate debt of countries in the Euro-Zone. This includes the nations of Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Countries in the Euro-Zone use the Euro as their currency. 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, Euro-Zone bond mutual Funds and ETFs may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Governments in the Euro-Zone are the largest issuers of bonds, followed by corporations. For instance, the European Central Bank can be a significant buyer of these bonds, especially when they are trying to pursue a quantitative easing policy. Investors purchase these funds to get both capital growth and income. The risk of each fund will vary, in part due to the duration of the bonds they own, as well as whether they focus on developed Europe or emerging Europe. Last Updated: 04/19/2024 View more View less