Europe Bond

Europe bond mutual Funds and ETFs invest the majority of their assets... Europe bond mutual Funds and ETFs invest the majority of their assets in the government and corporate debt of European 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, European 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 are the largest issuers of debt in Europe, with around US$14 trillion issued as of 2022. Of note, the European Central Bank (ECB) has been a large buyer of bonds, due to its quantitative easing (QE) program. Investors purchase these funds to get both capital growth and income. These funds can vary significantly in terms of risk. A fund that exclusively invests in the developed markets of Germany and France is likely to be more conservative than a fund that only invests in Lithuania, for example. Last Updated: 04/26/2024 View more View less

Europe bond mutual Funds and ETFs invest the majority of their assets in the government and corporate debt of European countries. These funds can be actively or passively managed and may seek to... Europe bond mutual Funds and ETFs invest the majority of their assets in the government and corporate debt of European 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, European 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 are the largest issuers of debt in Europe, with around US$14 trillion issued as of 2022. Of note, the European Central Bank (ECB) has been a large buyer of bonds, due to its quantitative easing (QE) program. Investors purchase these funds to get both capital growth and income. These funds can vary significantly in terms of risk. A fund that exclusively invests in the developed markets of Germany and France is likely to be more conservative than a fund that only invests in Lithuania, for example. Last Updated: 04/26/2024 View more View less