marko2525

8 ms·

1. 1.▲
   by marko2525 11y ago

   Yeah but the difference is that (non-index) mutual funds can actively allocate to different bonds so they have some protection against that. ETFs and index funds are in big trouble. For them, it's the equivalent of having people buy an
2. 2.▲
   by marko2525 11y ago

   This is totally true. The problem is that because bonds don't trade often, it's hard to make an index ETF based on them. You're basically asking something to be revalued multiple times a day when the holdings might get their
3. 3.▲
   by marko2525 11y ago

   This is not correct. What you're referring to is holding a bond to maturity versus holding a bond fund. If rates were to rise, both would be (relatively) equally affected. The difference would be that the price of the bond would revert