Active fixed income | Vanguard Netherlands Professional (2024)

FAQs

What is active fixed-income? ›

Active spread-based, fixed-income portfolio management involves taking positions in credit and other risk factors that differ from those of an index to generate excess return.

The AIFMD does not prevent an investor in the EEA from investing in Vanguard U.S. domiciled funds and/or U.S. domiciled ETFs on their own initiative (for example, through a broker or an exchange).

Meaning of fixed-income in English

an income, for example from a pension, that does not change over a period of time: Many senior citizens live on fixed incomes. investments that provide an income that does not change over a period of time: We can advise you on how to invest in fixed income (bonds and gilts).

Overall Rating. Morningstar has awarded this fund 3 stars based on its risk-adjusted performance compared to the 426 funds within its Morningstar Category.

While passive strategies have generally proven to outperform in equities, the same is not true for fixed income. In fixed income, active managers have outperformed. Over the last decade, the average active intermediate-term bond fund has outperformed its benchmark, 60% of the time.

Active income is income received from a job or business venture that you actively participated in. Examples of active income include wages, salaries, bonuses, commissions, tips, and net earnings from self-employment.

Dutch investment funds

You can invest in funds through banks or specialist investment brokers. Brokers generally include investment platforms that offer different baskets of funds based on risk appetite, or more-basic app-based robo advisors. Some banks also offer their own ranges of investment funds.

(commonly known as simply Vanguard), is an American registered investment advisor based in Malvern, Pennsylvania, with about $7.7 trillion in global assets under management, as of April 2023.

ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid-offer spread which should be considered fully before investing.

Can I live on a fixed income? ›

For some people, that's their only monthly income. Living on a fixed income basically means you're solely or almost entirely dependent on funds such as Social Security, pensions and inheritance, with little to no flexibility in the amount you're paid each month.

Warren Buffett is no fan of the bond market. At a time when every professional fixed-income investor and strategist seems to be recommending the purchase of bonds, Warren Buffett isn't buying that view.

VBTLX - Performance Comparison. In the year-to-date period, BND achieves a -2.87% return, which is significantly higher than VBTLX's -3.18% return. Both investments have delivered pretty close results over the past 10 years, with BND having a 1.20% annualized return and VBTLX not far ahead at 1.21%.

Fixed income broadly refers to those types of investment security that pay investors fixed interest or dividend payments until their maturity date. At maturity, investors are repaid the principal amount they had invested. Government and corporate bonds are the most common types of fixed-income products.

Fixed-income securities provide a fixed interest payment regardless of where market interest rates move. An investor that purchased a bond paying 2% per year will lose out on income if market interest rates rise above that level and the investor's money is tied-up in the 2% bond.

Define Fixed Income Sources for Retirement

Your Social Security payments may go up (or down) for cost of living adjustments, but once you start Social Security, your monthly payments are fixed. Pensions are like Social Security and are also considered to be fixed income.

Fixed-income investing can be a good strategy for new investors who want stability and regular income. Bonds and other fixed-income assets offer reliable returns and can help manage risk, as they are less volatile than stocks.