Small Regions Bond

Small regions bond mutual funds and ETFs invest the majority of their... Small regions bond mutual funds and ETFs invest the majority of their assets in various bonds issued by governments and corporations in so-called Small Regions economies. Examples of Small Regions include the Nordic Countries and North America. Some Small Regions funds exclusively invest in only one country. 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, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. In addition, these funds may have a mandate to invest in a particular region or continent. Issuance by sector can vary depending on the region in question. For example, in the first half of 2023, financial institutions in the Nordic economies issued US$70 billion of bonds vs. US$40 billion for governments and agencies. Investors can purchase these funds to get capital growth and income from a particular region or country. These funds can vary significantly in terms of risk. A small regions fund that only buys Nordic government debt will tend to be fairly low risk, while a fund that invests in eastern European debt is likely much riskier. Last Updated: 04/26/2024 View more View less

Small regions bond mutual funds and ETFs invest the majority of their assets in various bonds issued by governments and corporations in so-called Small Regions economies. Examples of Small Regions include the Nordic... Small regions bond mutual funds and ETFs invest the majority of their assets in various bonds issued by governments and corporations in so-called Small Regions economies. Examples of Small Regions include the Nordic Countries and North America. Some Small Regions funds exclusively invest in only one country. 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, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. In addition, these funds may have a mandate to invest in a particular region or continent. Issuance by sector can vary depending on the region in question. For example, in the first half of 2023, financial institutions in the Nordic economies issued US$70 billion of bonds vs. US$40 billion for governments and agencies. Investors can purchase these funds to get capital growth and income from a particular region or country. These funds can vary significantly in terms of risk. A small regions fund that only buys Nordic government debt will tend to be fairly low risk, while a fund that invests in eastern European debt is likely much riskier. Last Updated: 04/26/2024 View more View less