Articles Index
What is the European Debt Crisis?
The European debt crisis, which began in late 2009, is the shorthand term for the region’s struggle to pay the debts it has built up in recent decades. This is one of most important issues facing the world economy, but it is also one of the hardest to understand. Here is a Q&A to help familiarize you with the basics of, and outlook for, the European debt crisis.
Bond Funds Ranked 4- and 5-Stars by Morningstar
Get the list of all bond mutual funds ranked 4-Star and 5-Star by Morningstar.
Stocks and Bonds, Year by Year Total Return Performance
Find out the annual total return for both bonds and stocks in each calendar year from 1980 through 2011, together with their total returns for the full period. Which asset class delivered the better performance, stocks or bonds?
What is a Bond Ladder?
Find out what a bond ladder is, and how laddering can provide three important benefits to fixed income investors.
What is a Flattening Yield Curve? What is a Steepening Yield Curve?
The changing relationship between short- and long-term bond yields is often referred to as a "flattening" or "steepening" yield curve. Find out what these terms mean, and how they can provide an indication about expectations for economic growth.
The Complete, Updated List of Bond ETFs
Get the complete, updated list of bond exchange-traded funds (ETFs).
Long-Term Bond Market Returns: Stocks vs. Bonds
Find out how bond market performance compares to stocks in the past ten years, and learn which segments of the bond market provided the best returns. The historical performance data tells an interesting story about the importance of bonds in portfolio diversification.
What is the Discount Rate?
Find out how the Federal Reserve's discount rate works, the nature of its impact on the economy, and how the discount rate differs from the fed funds rate.
What is the Fed Funds Rate?
The federal funds rate – typically referred to in the press as “the fed funds rate” – is the rate at which banks with balances on held at the Federal Reserve borrow from one another an overnight basis. How does the fed funds rate work, and what is its impact on the economy?
What are Stable Value Funds?
Stable value funds, an investment option in retirement plan programs (such as 401(k)s and certain other tax-deferred vehicles, offer guaranteed return of principal with higher returns than are typically available in money market funds. Learn more about the benefits and risks of stable value funds.
Why Invest in Bonds?
Bonds don't receive the same attention that is lavished on stocks, but there are several benefits to investing in bonds, including steady income, diversification, principal protection, and potential tax benefits. Find out how bonds may help you achieve your financial goals.
How are Bond Funds Taxed?
Mutual funds are taxed in three different ways: 1) dividend income, 2) capital gains incurred by the fund each year, and 3) the final capital gain (or loss) you have when you sell. Find out how mutual fund taxation works, and why you have to pay a final capital gain tax even after have been paying a capital gains tax each year.
The Complete, Updated List of Global and International Bond ETFs
Get the complete, updated list of international, global, and emerging market bond exchange-traded funds (ETFs).
What are Fallen Angels?
Find out what a fallen angels are, how to invest in fallen angels, and whether the return potential is worth the risk in this segment of the high yield bond market.
How to Protect Against Rising Rates
While rising rates haven't been a problem investors have had to contend with for many years, it pays to build a diversified fixed income portfolio that can perform well in any environment. Find out six investments that will help protect your portfolio from rising rates.
The Benefits and Risks of Inverse Bond ETFs
Inverse bond ETFs can be an effective short-term vehicle for sophisticated investors to bet against the bond market. However, long-term investors need to be aware of the dangers.
What is a Floating Rate Bond?
Floating rate notes are bonds whose yields adjust with changes in prevailing interest rates. Learn more about the benefits - and pitfalls - of floating rate bonds, and the best way to invest in this market segment.
The Benefits and Risks of Long Term Bond Funds
Long-term bond funds (also known as “extended duration” funds) delivered tremendous returns in 2011 amid an environment of sharply falling yields on U.S. Treasuries. But beware: long-term bond funds also carry outsized risk. Learn more about the benefits and risks of investing in long-term bond funds.
How to Invest in Zero Coupon Bonds
Zero-coupon bond funds and ETFs can be much riskier than individual zero-coupon bonds. Find out why, and determine which investment better suits your needs.
The Benefits of Bond Index Funds
Bond index funds are the simplest and most cost-effective way to invest in bonds. With extensive diversification, low fees, and an approach that’s easily understood by the average investor, bond index funds may well be the best option for those who are seeking to earn investment income.
The Basics of Investing in Dividend-Paying Stocks
Those who are investing for income have numerous options outside of bonds, and the most traditional – and easiest to understand – choice is high-dividend stocks. Although investing in the stock market involves more risk than investing in bonds, dividend-paying stocks offer modest income and the potential for longer-term capital appreciation.
What are Convertible Bonds?
Convertible bonds are bonds that are issued by corporations and that can be converted to shares of the issuing company’s stock at the bondholder’s discretion. Convertible bonds typically offer higher yields than common stock, but lower yields than straight corporate bonds. Learn more about the basics of convertible bonds.
How to Invest in Utility Stocks
Those who are looking for ways to generate investment income often allocate a portion of their portfolios to utility stocks. Utilities have long been viewed as a conservative option that enables investors to capture higher dividends than are available in most areas of the stock market.
What is an MLP?
For those who are investing for income, Master Limited Partnerships, or MLPs, are a potential source of attractive yields. Find out more about the role MLPs can play in your portfolio.
What are REITs?
Real estate investment trusts, or REITs, are a type of investment often used by investors who want to boost the yield on their portfolio by participating in the real estate market. Find out how REITs work, and whether you should consider investing in REITs.