Japan Bond

Japan bond mutual funds and ETFs invest the majority of their assets... Japan bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of Japan. 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 Japanese Yen. 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. Japan has one of the largest bond markets in the world. Its sovereign debt amounted to approximately US$9 trillion as of 2023. A notable feature of Japan’s bond market is the major role played by the Bank of Japan (BOJ). The BOJ, as a result of quantitative easing programs, owns more than half the stock of Japanese government debt. Investors can purchase these funds for capital growth and income. Japan is seen as a conservative destination given the country’s status as a developed market economy. However, Japanese fixed-income investments are not without risk, given the government’s massive outstanding debt as a share of GDP. Last Updated: 04/26/2024 View more View less

Japan bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of Japan. These funds can be actively or passively managed and may seek to track or... Japan bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of Japan. 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 Japanese Yen. 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. Japan has one of the largest bond markets in the world. Its sovereign debt amounted to approximately US$9 trillion as of 2023. A notable feature of Japan’s bond market is the major role played by the Bank of Japan (BOJ). The BOJ, as a result of quantitative easing programs, owns more than half the stock of Japanese government debt. Investors can purchase these funds for capital growth and income. Japan is seen as a conservative destination given the country’s status as a developed market economy. However, Japanese fixed-income investments are not without risk, given the government’s massive outstanding debt as a share of GDP. Last Updated: 04/26/2024 View more View less