Bond Positions Weight

Indicator Description

Funds that have over 60% of asset value invested in bonds or or other fixed income securities would usually attract conservative investors.

Bond Percentage 
 = 
% of Bonds 
 
in the fund 

Percentage of fund asset invested in fixed income securities. About 30% of U.S. mutual funds invest in bonds.

Bond Positions Weight In A Nutshell

First, let us go over the types of bonds that are out there in the general sense. There are corporate bonds, which are issued from corporations such as Apple and GE, allowing investors to have returns and the company is able to raise money. Also, there are government bonds, which vary in length and yield and are regarded as the safest investment since the odds of the government defaulting are extremely low at this point.

When looking at funds and potential investments, it is important to understand what the underlying holdings are or what positions make up the product you are investing in. Taking a look at weightings, more specifically bond weightings, there are multiple factors to keep in mind.

Closer Look at Bond Positions Weight

When looking at mutual funds and ETF’s, you want to know what makes them up. Typically, the less risky funds will have different selections of bonds, which typically less risky. However, you have to watch the ratings to ensure there is a decent probability of being paid back later when the bonds come due. There are two sets of rating agencies, but they essentially look at the same factors. If you invest into a lower yield fund, you would expect the bonds to be safe and less risky. On the other side, if you are investing in a higher yield bond fund, there may be more corporate bonds and the ratings may vary, limiting risk but giving you a greater return.

Bonds are not only used in bonds funds, but also can be utilized as anchors in equity portfolios, providing a cushion of sorts to lower risk levels. There are hundreds upon thousands of bonds out there and it is important to know what they are. The last set of bonds to watch for are municipal bonds, which are issued by towns and cities to finance various items. These are potentially more risks as a community could fail or delay paying the purchasers back. Again, these are rated and typically are not traded on the market where retail investors can view them. In order to see how they work, ask your broker or investing professional and they can show you how they are traded between cities and banks.

Bonds are a crucial part to mutual funds and ETF’s and should be monitored because they can pose risks if they are not watched closely. Not all bonds are safe and should be researched accordingly. If you stumble across funds that have municipal bonds, reach out to the company that manages the fund as request more details. Bonds are an excellent way to balance a fund, but it is important to ensure it complementing the ultimate goal.

Other Suggestions

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Use Investing Themes to Complement your positions

You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run USD Crypto Fund Thematic Idea Now

USD Crypto Fund
USD Crypto Fund Theme
Fund from digital currency traded on multiple global exchanges in US dollors. The USD Crypto Fund theme has 24 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize USD Crypto Fund Theme or any other thematic opportunities.
View All  Next Launch
Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go