Sentences with phrase «higher than the bond fund»

If rates hold steady, you come out ahead with the CD because the interest rate is higher than the bond fund rate.

Not exact matches

Bond investors like mutual funds and pension funds hope to buy securities with comparatively higher yields than other asset - backed debt that could also provide diversification benefits.

That's significantly higher than the 4.63 % interest it got when it issued bonds to fund its own buyout a few years ago.

The SPDR Barclays High Yield Bond fund gathered more than $ 1.1 billion, or about half its total for the year, while the iShares iBoxx $ High Yield Corporate Bond took in $ 603 million, pulling it out of negative territory for the full year.

For instance, Morningstar found that passively managed target - date funds tend to have fewer holdings in high - yield bonds and Treasury inflation - protected securities than their actively managed counterparts.

These mutual funds have promised higher yields and better returns than bond - only funds, and for the most part they have delivered.

«For example, a bond fund may borrow and take on leverage in order to show a higher return but has significantly higher risk than a retiree may want in an income portfolio.»

Although municipal bond yields are generally lower than taxable bond fund yields, some investors in higher tax brackets may find they have a higher after - tax yield from a tax - free municipal bond fund investment instead of a taxable bond fund investment.

Bond ETFs saw their highest inflows in three years in April Rise in yields attracted buyersInvestors snapped up fixed - income exchange - traded funds in April, with the category seeing its biggest month of inflows in more than three years.

Yet we also see very strong inflows into junk bond funds, based on the belief that these high yields represent value rather than information about default probabilities.

However, high - yield (junk) bond funds and international bond funds can be affected by factors other than interest rates.

«In a horrible, truly worst - case scenario, a high - quality bond index fund is still less risky over the course of a year than stocks are in one day,» says the investment adviser Allan Roth, founder of Wealth Logic in Colorado Springs, alluding to the 20 percent decline in the Standard & Poor's 500 - stock index on Oct. 19, 1987.

Now that the Fed is ending its quantitative easing, and the US Treasury needs to issue more and more bonds in order to fund its fiscal deficit, we can safely assume that supply will be higher than demand.

As individuals normally hold far fewer bonds in their portfolio than bond mutual funds, the chances that a default will result in a large loss for the investor are generally higher for those investing in individual bonds.

Income potential is higher than U.S. and developed nation bond funds, given the additional risks and longer durations.

Income potential is generally higher than that paid by U.S. government bonds of similar duration and varies depending on the fund's duration and the quality of its bonds.

But in the last few episodes of sharp stock market drops, bonds went up (US government bonds are a safe haven asset and appreciate in crisis periods) so the only thing better than 3 months worth of expenses in a money market fund is having 3 + x months worth of expenses in the bond portfolio due to higher bond yields and negative correlation between bonds and stocks.

Muni bond funds have seen inflows of more than $ 30 billion this year alone, with the week ended June 22 seeing the highest inflows in over three years at $ 1.4 billion.

Considered to be a higher risk for loss than any other type of investments such as bond funds or money market funds they also have the potential to return the highest potential return in investment.

He said he assumed the office when the county faced a $ 40 million budget gap, then turned the «grim» situation into three straight budgets under the mandated state tax cap, built a budget surplus of more than $ 18 million this year, replenishing the fund balance to $ 40 million, and improved the county's bond rating to among the highest in the state.

If our model predicts a higher loss potential than you have specified for your portfolio, we will execute a reallocation from a riskier asset class (such as stocks) into a lower risk asset class (such as government bonds or money market funds).

Mutual funds sold in Canada tend to have high fees: for a balanced portfolio of stock and bond mutual funds, you'll typically pay a bit less than 2 % a year through a bank branch, or a bit more than 2 % through an independent mutual fund adviser.

Choose a self - directed TFSA investment account that lets you hold stocks, bonds, mutual funds, exchange - traded funds (ETFs) and other investments that can generate higher returns than savings accounts.

The appeal of preferred funds is they offer higher yields than bond ETFs, explains Alfred Lee, vice-president of BMO Global Asset Management and lead manager of the bank's Laddered Preferred Share Index ETF (TSX: ZPR).

The main danger of a junk bond fund is that there will be a higher rate of bankruptcy / default than in an investment grade bond fund.

Global bond mutual funds have higher costs than ETFs, with MERs ranging as high as 3 %.

In the current low - rate environment, an Ally 5 year CD has a much better risk / return profile than a high - quality bond mutual fund.

Historically, a broadly diversified portfolio of stocks (now easily obtained with one or two index mutual funds) has usually provided much higher long - term returns than bonds or cash, but with inevitable, dramatic ups and downs (volatility) that can be very stressful.

By diversifying into CDs, at least part of my money is earning a much higher interest rate than my money market funds, and is subject to less risk than my bond funds.

The BMO Floating Rate Income Fund, for example, lost more than 48 % in 2008 as high - yield bonds cratered along with stocks and real estate.

defaults (which happens more often than we would like to think), here also look for higher rating bonds portfolio that the fund / scheme carries.

Funds (of bonds, rather than funds that contain property or shares or other investments) are often high yield, low volatiFunds (of bonds, rather than funds that contain property or shares or other investments) are often high yield, low volatifunds that contain property or shares or other investments) are often high yield, low volatility.

That gives it substantially more credit risk than investment - grade bond funds, but the high - yield short positions moderate some of that risk.

The average cost to trade mutual funds is $ 30.55, 17 % higher than than the average trading fee for non-U.S. Treasury bonds.

This, though, was a function of the trend in interest rates; at the start of those periods, the funds were buying bonds with higher yields than bonds offer today.

For these professionals, liquid bond ETFs are a convenient, diversified way to hedge against rising rates and seek higher yields, at lower cost than active mutual funds.

Bond funds or bonds are conservative, low risk, and highly liquid investments that are ideal for investors who wish to enjoy government - backed funds and higher returns than savings and money market funds.

Here's the break - out, by fund inception date: Some observations: - Every fund listed (5 years or older) with current yields of 6 % or more, lost more than 20 % of its value in 2008, except three: PIMCO Income A PONAX, which lost only 6.0 %; TCW Total Return Bond I TGLMX, which lost only 6.2 % (in 1994); and First Eagle High Yield I FEHIX, which lost 15.8 %.

But I'd be wary of venturing, as some investors seeking higher yields do, into high - yield, or junk, bond funds, as they're generally more volatile than investment - grade funds and don't hold up as well in periods of economic and market stress.

You are likely to do better than the vast majority of investors with a Total US Stock fund, a Total International Stock fund, and one or two low - cost, high quality bond funds.

Or, since the annuity provides higher payments, you could choose to invest less money in the annuity than in the bond fund and receive the same size monthly payments.

The debt portfolio of the fund consists of high quality corporate bonds and G - secs with more than 80 % investment in AAA rated securities and rest in AA rated.

I find it hard to believe that you are seeing higher results in a self - directed fixed income / bond fund than what CST can offer.

A person whose portfolio features higher - risk investments than typical index funds and bonds needs to be more conservative when withdrawing money, particularly during the early years of retirement.

I wish Municipal bonds had the same That's why I only invest in funds with ratings higher than A.

Eight of the 60/40 SPY / multisector bond fund combinations had a higher seven - year performance than the benchmark 60/40 portfolio, but in all but one case they experienced larger losses in 2008 and higher volatility.

Expenses tend to be higher for stock funds than bond funds, and higher for actively managed funds than index funds.

Indeed, a broad swath of high - yield bonds that includes smaller issuances has steadily performed better than an index of the biggest, most - traded notes tracked by passive funds.

We love high yield corporate bonds; they pay a lot more interest than treasuries and also because these are not the greatest borrowers — I'm not talking little companies; think CitiBank and other very big companies that don't have a pristine credit rating — they can not lend money out very long so the maturities of our high yield bond fund is closer in.

We have high yield dividend equities — this is unique to Rebalance IRA — that we use a proxy for a bond fund because interest rates are artificially manipulated by the government and kept artificially lower than they normally would have been if the market had set those rates by its own market forces.