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bond funds -- how to interpret yield and appreciation?
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Topic: bond funds -- how to interpret yield and appreciation? (Read 1625 times)
StacheOfInnerPeace
5 O'Clock Shadow
Posts: 11
bond funds -- how to interpret yield and appreciation?
«
on:
April 21, 2016, 04:29:38 PM »
This is probably a pretty simple topic for folks here, but I am still uncertain:
How does one interpret the reported growth in a bond fund?
https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=vwitx
Is the yield 2.82% calculated into the growth graph?
Thanks,
SoIP
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Vagabond76
Stubble
Posts: 225
Age: 48
Location: Destin, FL
Re: bond funds -- how to interpret yield and appreciation?
«
Reply #1 on:
April 21, 2016, 04:48:17 PM »
The yield is not factored into the price. You can take the interest payments in cash or reinvested in new shares. The "growth of $10,000" charts will show the return with interest payments reinvested.
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Heckler
Handlebar Stache
Posts: 1752
Re: bond funds -- how to interpret yield and appreciation?
«
Reply #2 on:
April 22, 2016, 08:13:58 AM »
These articles helped me understand bond funds and that you must plan to hold them for at least their duration.
http://canadiancouchpotato.com/2015/05/18/how-changing-interest-rates-affect-fixed-income/
http://canadiancouchpotato.com/2013/08/07/is-your-bond-fund-really-losing-money/
http://canadiancouchpotato.com/2013/09/23/how-not-to-prepare-for-a-bear-market-in-bonds/
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Last Edit: April 22, 2016, 08:16:01 AM by Heckler
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bond funds -- how to interpret yield and appreciation?