Making the Case for Investing in Global Fixed Income
The overseas investable bond market has grown over the past decade, and currently accounts for more than 35% of the world’s investable market, according to Vanguard research. However, many U.S. investors are not investing in these securities. In a recent Vanguard research paper, Global fixed income: Considerations for U.S. investors, authors Joe Davis, Andrew Patterson, Chris Philips, and Chuck Thomas take a look at the impact of adding international bonds to one’s portfolio.
Some of the research findings:
• While the bonds from a single country could be more volatile than similar bonds in the United States, an investment that includes the bonds of all countries and issuers (through an exchange traded fund, for example) could be beneficial.
Source: Black Enterprise | Sheiresa Ngo