Nov 03, 2011 in Bonds

Junk Bonds back at/near multi-year highs.   If treasury rates are going up, you want to be overweight high-yield to neutralize effects of duration risk.

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Comments (2) -

Nov 04, 2011 20:31 #

Does the total return chart assume reinvestment of dividends into the ETF?

enf United States

Nov 04, 2011 20:59 #

You can think about it 2 ways:

1) reinvestment of the the dividend back into the ETF   or
2) you have your broker send you cash in the amount of the dividend

The calculation of total return is really not exact due to a slight timing difference in the cash actually reaching your account on the payable date  -- but the difference is usually a rounding-error and will sometimes work in your favor relative to the ex-date.  

The real point is that the total return calculation is how the underlying index value is calculated -- and this same method is applied consistently to all ETFs in our database.


Chris United States

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