The term “bond fund” refers to the investment pool usually traded as anexchange-traded fund(ETF) or mutual fund. This fund typically invests in fixed-income securities, such as corporate bonds, government bonds, junk bonds, money market instruments, etc. The primary objective of this type of...
A bond fund is a mutual fund or an exchange-traded fund (ETF) that buys and sells debt instruments like government and corporate bonds. The primary goal of a bond fund is to generate monthly income for investors. For an investor, a bond fund is an alternative to buying individual bonds. ...
Bond Funds Can Lose Value A bond mutual fund can gain or lose value, because the fund manager(s) often sell the underlying bonds in the fund prior to maturity. If bond prices have fallen since the bond was purchased, the bond loses value at the time of sale. ...
What Does It Mean When a Bond Is Callable? A callable bond entitles the issuer to repay the bond before its maturity date. There is usually a predetermined call price and date listed in the bond prospectus. The Bottom Line Different bond types—government, corporate, or municipal—have unique...
Here’s everything you need to know about what a mutual fund is, how it works, and why they could be your most valuable tool for long-term investing.
7 Best Vanguard Bond Funds to Buy Vanguard's bond fund lineup continues to grow, with new additions across various maturities. Tony DongFeb. 20, 2025 ETF With the Highest 10-Year Return Past performance is no guarantee of future results, but the 10-year return of ETFs can be a starti...
A Roth IRA offers tax advantages but comes with limited room, so strategic fund selection matters. Tony DongFeb. 11, 2025 7 Best Treasury ETFs to Buy Now Fixed-income experts suggest staying on the short end of the yield curve for safety and income. ...
How do mutual funds work? How do mutual fund distributions work? Distributions may be in the form of capital gains, interest income, or foreign source income or “taxable dividends”. Because mutual funds invest in a variety of different assets, income can be earned from dividends on stocks ...
After they’ve been issued, most bonds could be sold by the initial bondholder to other investors. In other terms, all the way through to its maturity date, a bondholder does not have to keep a bond. When interest rates fall, or if the borrower’s credit has strengthened, it is often...
While the fed funds target rate has a more direct impact on short-term bond yields, other market forces, such as how market demand keeps up with supply, have greater influence on 10-year Treasury yields. Bond market challenges 2024 proved to be a challenging year for bond investors. Through...