Bond Index Funds - A Synopsis
- Topics:
- Commercial Lending
- Tags:
- Bond,
- Finance,
- IndexFunds.com,
- Investment
- Source:
- IndexFunds.com
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Overview: The main highlight of this article is bond index funds. The first bond index fund was in the early conceptual stages in 1985. Some of its advantages include: consistent performance, Index funds enjoy lower operating expenses, tough to beat the market in bonds, diversification. However, it suffers from severe limitations. These are its unclear whether bond index funds are best, can't monitor credit quality, or call risk as closely, some Investors don't like having treasuries in bond index funds, and some Investors don't like having treasuries in bond index funds etc. Still, these kinds of funds could potentially pose a great threat to more conventional index funds and mutual funds in general, not least of all because their expenses should probably be lower.
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Format: HTML | Date: Jun 2000 | Pages: 1






