|Expense Ratio (net)||0.68%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Average|
|Beta (5Y Monthly)||-0.40|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Sep 18, 2002|
Analysts forecasting inflation have been crying wolf for a decade, leaving bond investors inured to warnings of rising interest rates or an inflation scare. The inflation outlook right now is sanguine, with indicators suggesting only a gradual uptick. Against this backdrop, financial advisors say they have been more focused on helping retirees stretch a little more income out of yield-starved bond portfolios than guarding against fast-rising interest rates.
What many do not understand about bond funds is that they work in the opposite direction as interest rates. Between 1981 and about 2016, bonds saw a bull run from the high inflation rates of the early 1980s to the ultra-low interest rates seen for most of this decade. Now with interest rates recovering from almost 0% levels (and negative rates in some foreign markets), signs of rising interest rates have appeared everywhere.