As you can see, up until late 2010 the duration of the Aggregate Bond Index tended to hover around 4.5 years. That has increased to approximately 5.5 years today. I think it is important that "passive" index investors be aware that they are currently making an "active" decision to increase their interest rate risk.
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Showing posts with label Barclays Aggregate Bond. Show all posts
Showing posts with label Barclays Aggregate Bond. Show all posts
Monday, October 14, 2013
Are Index Investors Unknowingly Increasing Interest Rate Risk?
Here in an interestingly look at the Barclay's US Aggregate Bond Index from Lord Abbett The below Chart shows how the duration of the Index has changed over the last ten years.
Labels:
active,
Barclays Aggregate Bond,
duration,
index,
interest rate risk,
passive
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