Not exact matches
These
corporate fixed - income
instruments pay a dividend that is taxed at a more favourable rate
than regular
bond interest, but you only benefit from this if they are held outside of a registered account.
Because Treasuries are safe, they offer a lower return
than riskier debt
instruments, such as
corporate bonds.
Debt funds invest in fixed income
instruments such as
Corporate and Government
bonds, are lower - risk investment options for those looking for better interest rates
than their bank's savings accounts / fixed deposits.
For example, when it comes to fixed income
instruments, I much prefer buying US denominated
corporate bonds which trade electronically and offer better pricing
than Canadian
bonds which trade via Canada's dealer network and are subject to large markups by the various financial institution.
However, due to their credit quality, which is lower
than that of
instruments like U.S. Treasury
bonds or high - grade
corporate bonds, high - yield
bonds involve greater risk.
Bogle also admitted he's «still trying to think of what to say» in defense of one of Vanguard's most popular product groups,
bond index funds, which (unlike stock funds) can only sample widely - held government and
corporate debt
instruments; it's impractical to own more
than a small percentage of all the
bonds there are.