Texas & western Iowa | What_If - 2/13/2021 06:56
BSV is short term bonds, what risks are there?
Thanks for your opinion. You'd want to look at 'average duration' on a bond fund. Not to be confused with average maturity. The average duration for BSV is 2.8 years.
- From the VG site:
- A measure of the sensitivity of bond—and bond mutual fund—prices to interest rate movements. For example, if a bond has a duration of 2 years, its price would fall about 2% when interest rates rose 1 percentage point. On the other hand, the bond's price would rise by about 2% when interest rates fell by 1 percentage point. -
https://investor.vanguard.com/etf/profile/BSV
Edited by PRNDL 2/13/2021 17:22
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