Sentences with phrase «characteristics of a bond index»
Stratified sampling allows us to select a subset of bonds that have similar characteristics of a bond index, without having to hold every single bond.
https://www.blackrockblog.com/
As a result, key characteristics of a bond index, such as the average maturity of bonds in the index, can change every year.
Not exact matches
Bonds of an index with similar characteristics can be grouped together and will have similar risk attributes.
Indices that use independent data sources and global indexing standards also help raise the level of information about the characteristics of opaque bond markets.
These funds have no choice but to use sampling: they buy a smaller number of bonds that approximate the overall characteristics of the index (average term, coupon, duration, etc.).
The index might have 100 bonds that fall into a given bucket, but we could select just a few bonds to help meet the risk characteristics of that bucket for the portfolio.
The percentages of the Portfolio's assets allocated to each Underlying Fund are: Vanguard Total Bond Market II Index Fund 14 % Vanguard Total International Bond Index Fund 5 % Vanguard Short - Term Inflation - Protected Securities Index Fund 6 % Vanguard Federal Money Market Fund 75 % Through its investment in Vanguard Total Bond Market II Index Fund, the Portfolio indirectly invests in a broadly diversified collection of securities that, in the aggregate, approximates the Bloomberg Barclays U.S. Aggregate Float Adjusted Index in terms of key risk factors and other characteristics.
Instead, bond ETF managers use a «sampling» approach where they try to replicate the risk and return characteristics of the index using a smaller portfolio of available bonds.
Tracking a large bond index is difficult and expensive, so index funds pegged to the DEX Universe always use «representative sampling,» selecting a smaller of number bonds with similar overall characteristics.
That being the case, ETF managers attempt to reflect the risk and return characteristics of popular bond indices by sampling a basket of liquid securities that trade frequently and closely track the index.
Bonds of an index with similar characteristics can be grouped together and will have similar risk attributes.
The percentages of the Portfolio's assets allocated to each Underlying Fund are: Vanguard Total Bond Market II Index Fund 70 % Vanguard Total International Bond Index Fund 17.50 % Vanguard Institutional Total Stock Market Index Fund 8.75 % Vanguard Total International Stock Index Fund 3.75 % Through its investment in Vanguard Total Bond Market II Index Fund, the Portfolio indirectly invests in a broadly diversified collection of securities that, in the aggregate, approximates the Bloomberg Barclays U.S. Aggregate Float Adjusted Index in terms of key risk factors and other characteristics.