Non-US Investing • VAGF is it really for Europeans?

Hopefully, you are aware that VAGF is € hedged, so the Euro/Dollar exchange rate is not very meaningful to its performance. The share price of VAGF dropped because central banks raised interest rates. That's the risk of bond funds (and why they pay more than cash). If interest rates go up, bonds and bond funds go down, and vice versa. The longer the duration of the bond or bond fund, the higher interest rate sensitivity. Euro government bond funds with similar duration and credit quality had a similar negative performance as VAGF over the period you mentioned.

Statistics: Posted by Bernmaster — Tue Aug 06, 2024 1:41 pm — Replies 1 — Views 88

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