Click any of the numbered subheadings in that article to find another article about that each selection factor for
choosing bond market index funds.
Not exact matches
Additionally, you might
choose an array of
bond market indexes, commodity
indexes, and
indexes that focus on international securities, which all have different risk profiles.
Total
market funds typically follow an
indexing strategy —
choosing a broad
market index that tracks the entire
bond or stock
market and investing in all or a representative sample of the
bonds or stocks in that
index.
To make study results tangible, instead of pure
indices, two low - cost, no - transaction - fee investment vehicles with sufficiently long life spans were
chosen: the Vanguard 500
Index Fund Investor Shares (VFINX) and Vanguard Total
Bond Market Index Fund Investor Shares (VBMFX) mutual funds.
They typically do this by following an
indexing strategy —
choosing a broad
market index that tracks the entire
bond or stock
market and investing in all or a representative sample of the
bonds or stocks in that
index.
Our research on the Fundamental
Index ® concept, as applied to
bonds, underscores the widely held view in the
bond community that we should not
choose to own more of any security just because there's more of it available to us.10 Figure 9 plots four different Fundamental
Index portfolios (weighted on sales, profits, assets and dividends) in investment - grade
bonds (green), high - yield
bonds (blue) and emerging
markets sovereign debt (yellow).11 Most of these have lower volatility and higher return than the cap - weighted benchmark (marked with a red dot).