Bonds

Why invest in Bonds?

Overview

In the same way that Equity ETFs track an index like the S&P 500, passive Bond ETF’s track one of the major fixed income indices. The bond indices serve as a proxy for a segment of the fixed-income market including:

  • Money Markets
  • US Govt Bonds
  • International Govt Bonds
  • Municipal Bonds
  • Corporate Bonds
  • Mortgage Backed
  • Convertible Bonds
  • Inflation Protected
  • Emerging Market Bonds
  • Diversified
  • High Yield Bonds

Bond ETFs offer an opportunity to achieve investment objectives such as stability in income, diversification of risk and tax savings (certain bonds).

Key factors to consider before investing

  • Economic growth measures (GDP)
  • Inflation measures and interest rate cycle
  • Employment situation
  • Among other factors influencing Monetary Policy

Performance

Bonds – Calendar Year returns by sub sector since 2009

Bonds – Quarterly returns by sub sector since 2009

 

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