Sentences with phrase «underlying bonds held»

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed.

Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.

Investors should keep in mind that while monthly distributions from bond ETFs are often called «dividends,» interest from the underlying bond holdings aren't considered qualified dividends, and are taxed as ordinary income.

Not exact matches

If the company's underlying stock decreases in value, an investor can still hold onto the convertible bond and receive the bond's par value at maturity, as long as the issuer does not default.

Bond funds and bond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fuBond funds and bond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fubond holdings have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the funds.

An ETF holds assets such as stocks, supplies, or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day.

Taxation Of Distributions Besides taxes on capital gains incurred from selling shares of ETFs, investors are also subject to pay taxes on periodic distributions, which can be dividends paid out from the underlying stock holdings, interest from bond holdings, return of capital (ROC) or capital gains — which come in two forms: long - term gains and short - term gains.

Because $ TBT is a leveraged inverse ETF, there is a degree of underperformance to the underlying index (long - term treasury bonds) as the holding period increases.

Though the ECB has acknowledged that one of the main factors underlying the eurozone's stagnation is a lack of credit growth, any potential use of QE seems unlikely to make much of an impact in this regard, even if an announcement of QE could drive yields down further, making it even less attractive for banks to hold government bonds.

Hence, for the debt mutual funds, declining bond prices of underlying holdings have been impacting the return that is a function of changing bond price.

If so, it seems that they would have a higher risk profile than buying and holding the underlying bonds to maturity.

Convertible arbitrage holds long positions in convertible bonds while shorting the stock of the underlying company.

In a series of posts last month, I looked at ETFs from Horizons and Claymore that use derivatives rather than simply holding the stocks or bonds in their underlying indexes.

Unlike stocks, which represent ownership in the underlying company, bondholders are creditors of the issuer — meaning that those holding the bonds are lending money to the issuer.

If the company's underlying stock decreases in value, an investor can still hold onto the convertible bond and receive the bond's par value at maturity, as long as the issuer does not default.

And importantly, these bond funds (and their underlying bonds) may soon produce negative returns if they are not held for a sufficient duration.

If you dig deeper you'll also find that XTR holds only plain - vanilla stock and bond funds, while ZIM includes some more exotic investments such as floating - rate notes, emerging market bonds and a couple of ETFs that write call and put options on their underlying stocks to generate more income.

An ETF's market price can actually be a better approximation of the aggregate value of the underlying bonds than its own NAV, and highly liquid bond ETFs can perform price discovery for the bonds they hold.

The nice think about bond ETFs is that they are much more liquid than holding the underlying bonds.

Adopting the discipline of rebalancing bond exposures toward fundamental weights, which are linked to the economic size of the underlying issuing companies rather than to the amount of debt they have issued, achieves the dual objective of: 1) tilting holdings toward companies with better debt servicing and higher credit ratings; and 2) taking advantage of mean reversion in securities prices over time.

Because a bond mutual fund is just a collection of bonds, at any given time its expected return and risk are exactly equal to those of the underlying assets it holds.

Also, if you bought the underlying and held them to maturity, then your potfolio would start out with a long duration and grow shorter over time (Unless you keep buying bonds the same way the mutual fund manager does).

Of course, in the short - term the bond ETF's price will be volatile because its underlying holdings will fall in value in the short - term while it waits to accrue its interest income.

The percentages of the Portfolio's assets allocated to each Underlying Fund are: Vanguard ® Total Bond Market II Index Fund 60 % Vanguard ® Total International Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 yBond Market II Index Fund 60 % Vanguard ® Total International Bond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 yBond Index Fund 15 % Vanguard ® Institutional Total Stock Market Index Fund 17.5 % Vanguard ® Total International Stock Index Fund 7.5 % Through its ownership of the two bond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 ybond funds, the Portfolio indirectly holds a mix of bonds — including government, government agency, corporate, securitized non-U.S. investment - grade fixed income investments and international dollar - denominated bonds, as well as mortgage - backed and asset - backed securities — that represents a wide spectrum of public, investment - grade, taxable, fixed income securities in the United States and abroad, all with maturities of more than 1 year.

Hold Me Tight will help you and your partner identify your patterns of negative interaction — and the underlying emotions that fuel them — so you can de-escalate the negative spirals that erode the bond between you.