In the fixed income space, investors can look to the S&P
International Corporate Bond Index to bolster the stability and diversity of their investments through exposure to investment grade corporate debt outside the United States.
Historically, the S&P
International Corporate Bond Index has demonstrated relatively lower volatility than equity and commodity indices such as the S&P 500 ® and the S&P GSCI ®.
I compared two corporate bond indices: The S&P
International Corporate Bond Index and the S&P US Issued Investment Grade Corporate Bond Index to determine what performance risks both face in their respective markets.
While high quality ratings often imply lower yields, the S&P
International Corporate Bond Index has a weighted average yield - to - worst of 2.16 %, which is higher than the average yields of U.S. treasuries and comparable to the 2.26 % yield of the S&P 500 AAA Investment Corporate Bond Index.
The S&P
International Corporate Bond Index is comprised of non-U.S. investment grade corporate issuers and is calculated in US dollars.
Not exact matches
Here are some examples: You can own a mid-size company
index; a small company
index; an
international index; an emerging market
index (think Third World countries); a government
bond index; a
corporate bond index; a real estate
index fund and on and on.
Aviva Pension Alliance Trust Sustainable Future Absolute Growth S2 Aviva Pension Alliance Trust Sustainable Future
Corporate Bond S2 Aviva Pension Alliance Trust Sustainable Future European Growth S2 Aviva Pension Alliance Trust Sustainable Future Global Growth S2 Aviva Pension Alliance Trust Sustainable Future Managed S2 Aviva Pension Alliance Trust Sustainable Future UK Growth S2 Aviva Pension Alliance Trust UK Ethical S2 Aviva Pension BlackRock Aquila 50:50 Global Equity
Index Tracker S2 Aviva Pension BlackRock Aquila 60:40 Global Equity
Index Tracker S2 Aviva Pension BlackRock Aquila 70:30 Global Equity
Index Tracker S2 Aviva Pension BlackRock Aquila Consensus S2 Aviva Pension BlackRock Aquila
Corporate Bond Index Tracker S2 Aviva Pension BlackRock Aquila European Equity
Index Tracker S2 Aviva Pension BlackRock Aquila Japanese Equity
Index Tracker S2 Aviva Pension BlackRock Aquila Over 15 years Gilt
Index Tracker S2 Aviva Pension BlackRock Aquila Over 15 yrs Corp
Bond Tracker S2 Aviva Pension BlackRock Aquila Over 5 yrs
Index - Lkd Gilt Tracker S2 Aviva Pension BlackRock Aquila Overseas Eq Consensus Tracker S2 Aviva Pension BlackRock Aquila Pacific Rim Equity
Index Tracker S2 Aviva Pension BlackRock Aquila UK Equity
Index Tracker S2 Aviva Pension BlackRock Aquila US Equity
Index Tracker S2 Aviva Pension
Corporate Bond S2 Aviva Pension Deposit S2 Aviva Pension European Equity S2 Aviva Pension Gilt S2 Aviva Pension Global
Bond S2 Aviva Pension Global Equity Income S2 Aviva Pension Global Equity S2 Aviva Pension
Index Linked Gilt S2 Aviva Pension
International Index Tracking S2 Aviva Pension Long Gilt S2 Aviva Pension Managed High Income S2 Aviva Pension Mixed Investment (0 - 35 % Shares) S2 Aviva Pension Mixed Investment (20 - 60 % Shares) S2 Aviva Pension Mixed Investment (40 - 85 % Shares) S2 Aviva Pension Pacific Equity S2 Aviva Pension Property S2 Aviva Pension Stakeholder With Profit 3 S2 Aviva Pension UK Equity S2 Aviva Pension UK
Index Tracking S2 Aviva Pension US Equity S2
Vanguard has also extended its
bond index and ETF lineup, introducing Vanguard Short - Term Inflation - Protected Securities Fund in 2012; Vanguard Total International Bond Index Fund / ETF and Vanguard Emerging Markets Government Bond Index Fund / ETF in 2013; Vanguard Tax - Exempt Bond Index Fund / ETF in 2015; and Vanguard Total Corporate ETF in 2
bond index and ETF lineup, introducing Vanguard Short - Term Inflation - Protected Securities Fund in 2012; Vanguard Total International Bond Index Fund / ETF and Vanguard Emerging Markets Government Bond Index Fund / ETF in 2013; Vanguard Tax - Exempt Bond Index Fund / ETF in 2015; and Vanguard Total Corporate ETF in
index and ETF lineup, introducing Vanguard Short - Term Inflation - Protected Securities Fund in 2012; Vanguard Total
International Bond Index Fund / ETF and Vanguard Emerging Markets Government Bond Index Fund / ETF in 2013; Vanguard Tax - Exempt Bond Index Fund / ETF in 2015; and Vanguard Total Corporate ETF in 2
Bond Index Fund / ETF and Vanguard Emerging Markets Government Bond Index Fund / ETF in 2013; Vanguard Tax - Exempt Bond Index Fund / ETF in 2015; and Vanguard Total Corporate ETF in
Index Fund / ETF and Vanguard Emerging Markets Government
Bond Index Fund / ETF in 2013; Vanguard Tax - Exempt Bond Index Fund / ETF in 2015; and Vanguard Total Corporate ETF in 2
Bond Index Fund / ETF in 2013; Vanguard Tax - Exempt Bond Index Fund / ETF in 2015; and Vanguard Total Corporate ETF in
Index Fund / ETF in 2013; Vanguard Tax - Exempt
Bond Index Fund / ETF in 2015; and Vanguard Total Corporate ETF in 2
Bond Index Fund / ETF in 2015; and Vanguard Total Corporate ETF in
Index Fund / ETF in 2015; and Vanguard Total
Corporate ETF in 2017.
In response to concern related to the discrepancies between Chinese domestic and
international ratings, we launched the S&P China High Quality
Corporate Bond 3 - 7 Year Index, which is designed to measure higher - quality corpora
Corporate Bond 3 - 7 Year
Index, which is designed to measure higher - quality
corporatecorporate bonds.
The fixed income portion was represented by the iShares Lehman Aggregate
Bond Index Fund (AGG) and iShares Goldman Sachs Investop
Corporate Bond Index Fund (LQD) from 2004 — 2008 when the iShares S&P / CitiGroup
International Treasure
Index Fund (IGOV) was added.
Through its investment in Vanguard Total
International Bond Index Fund, the Portfolio also indirectly invests in government, government agency,
corporate, and securitized non-U.S. investment - grade fixed income investments, all issued in currencies other than the U.S. dollar and with maturities of more than 1 year.
This
index measures a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States — including government,
corporate, and
international dollar - denominated
bonds, as well as mortgage - backed and asset - backed securities, all with maturities of more than 1 year.
Then, in Exhibit 2, we can see the performance differences between the S&P 500
Bond Index (MXN), S&P / BMV Sovereign
International UMS
Bond Index, and the S&P / BMV
Corporate Eurobonos
Bond Index, both of which include the returns of the currency, since they track the eurobond market (
bonds issued outside of Mexico in U.S. dollars), expressed in Mexican pesos.
The percentages of the Portfolio's assets allocated to each Underlying Fund are: Vanguard ® Total
Bond Market II Index Fund 60 % Vanguard ® Total International Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 y
Bond Market II
Index Fund 60 % Vanguard ® Total
International Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more
International Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 y
Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market
Index Fund 17.5 % Vanguard ® Total
International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more
International Stock
Index Fund 7.5 % Through its ownership of the two
bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 y
bond funds, the Portfolio indirectly holds a mix of
bonds — including government, government agency,
corporate, securitized non-U.S. investment - grade fixed income investments and
international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more
international dollar - denominated
bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 year.
The
Index measures a wide spectrum of public, investment - grade, taxable fixed income securities in the United States — including government,
corporate, and
international dollar - denominated
bonds, as well as mortgage - backed and asset - backed securities — all with maturities of more than 1 year.
Through its ownership of Vanguard ® Total
International Bond Index Fund, the Portfolio indirectly owns government, government agency,
corporate, and securitized non-U.S. investment - grade fixed income investments, all issued in currencies other than the U.S. dollar and with maturities of more than 1 year.
Notes: U.S. stocks represented by Dow Jones U.S. Total Stock Market
Index through April 2005, MSCI US Broad Market Index through June 2013 and CRSP US Total Market Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets Index; REITs by FTSE NAREIT Equity REIT Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index through April 2005, MSCI US Broad Market
Index through June 2013 and CRSP US Total Market Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets Index; REITs by FTSE NAREIT Equity REIT Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index through June 2013 and CRSP US Total Market
Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets Index; REITs by FTSE NAREIT Equity REIT Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets
Index; REITs by FTSE NAREIT Equity REIT Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; REITs by FTSE NAREIT Equity REIT
Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; dividend stocks by Dow Jones U.S. Select Dividend
Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; commodities by S&P GSCI Commodity
Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; high yield
bonds by Bloomberg Barclays U.S.
Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bo
Corporate High Yield
Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; emerging markets
bonds by Bloomberg Barclays EM USD Aggregate
Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; investment - grade
corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bo
corporate bonds by Bloomberg Barclays U.S.
Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bo
Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; U.S. Treasury
bonds by Bloomberg Barclays U.S. Treasury
Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index; Hedge fund
index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
index by HFRI fund - weighted total return
Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond I
Index and
international bonds by Bloomberg Barclays Global Aggregate ex-USD
Bond IndexIndex.