In this episode of “What’s the Risk?” we take a look at the historic performance of the Bloomberg AusBond Composite 0+ Yr Index. Investors who invest in Australian bonds, or fixed interest, may know Vanguard’s VAF and Blackrock’s IAF as ETF that seek to track this index.
Bonds aren’t exactly popular with many retail investors who gravitate to equities due to higher returns, or may not even understand how they work. And in recent years the performance of bonds hasn’t changed the minds of many investors, but bonds can and do have a place in many portfolios.
The potential returns on bonds has increased after the rout due to rising interest rates, so some investors may be looking to add them into their portfolios.
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