Sentences with phrase «indices in rising rate environments»

It is therefore important to examine the potential performance behavior of small - cap indices in a rising rate environment.

Not exact matches

In a rising interest rate environment, the risk that investors have in owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark indeIn a rising interest rate environment, the risk that investors have in owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark indein owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark index.

Consequently, the S&P / LSTA Leveraged Loan 100 Index has taken a -1.55 % hit YTD, demonstrating that floating - rate securities can actually sink in a rising rate environment and even underperform fixed - rate securities.

But how badly would bond index funds suffer in a rising rate environment?

I have the majority of my investments in index funds at Vanguard in a taxable account, but don't like bond funds paying next to nothing in a rising interest rate environment, though their low correlation to stocks would be nice, return free risk though.

The variability of returns is expected to be greater than the index as the intent of the portfolio is to provide both protection in rising interest rate environments as well as ultimately provide a higher level of return through both income and capital appreciation.

Said differently, the secular bull market in bonds that had made bond indexing so difficult to beat appeared to be ending, and we thought adding actively managed funds improved our ability to deal with a potentially rising interest rate environment.

The article notes the ETF as the first U.S. ETF designed to outperform major U.S. indexes in response to a rising rate environment.

However in reality, there are other simultaneous factors so the results have been less obvious but there is potential for high commodity index returns in rising rate environments.