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Term |
Definition |
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Coupon |
The annual income received from a fixed-income security, expressed as a percentage of the par value of the security and par weighted on portfolio level. |
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Credit (%) |
The proportion of a mutual fund’s total net assets that is invested in credit instruments—such as corporate bonds, securitized debt, or other credit-related securities—expressed as a percentage. This metric indicates the fund’s exposure to credit markets and associated credit risk. |
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Effective Duration |
A measure of a portfolio’s price sensitivity to interest rate changes, including expected changes in cash flows caused by embedded options. The higher the effective duration, the higher the sensitivity to interest rate changes. |
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Maturity |
A weighted average of all the maturities of the bonds in a portfolio, computed by weighting each bond's effective maturity by the market value of the security. |
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Modified Duration |
A measure of a portfolio’s price sensitivity to changes in interest rates. It estimates the percentage change in price for a 1% (100 basis point) change in yield, assuming all other factors remain constant. |
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Spread |
The difference between the yield on a bond or credit instrument and the yield on a benchmark security of similar maturity, typically a government bond. It reflects the additional compensation investors receive for taking on credit risk and is usually expressed in basis points. |
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Spread Duration |
A measure of the portfolio’s sensitivity to changes in credit spreads. |
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Weighted Average Life |
A measure of average number of years until the principal of the securities is expected to be fully repaid. |
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Yield to Maturity |
Represents the weighted average annualized return an investor would earn if the ETF's underlying bonds were held to maturity, assuming all interest payments are made as scheduled, bonds are held to maturity, coupons are reinvested at the same rate. |