Has Anyone Bought Zeros Instead?
Moderator: Global Moderator
Has Anyone Bought Zeros Instead?
Has anyone bought Zeros instead of the coupon paying Treasuries? Or have you studied how they behave comparatively? I see they are priced less than half. Does it follow that they are twice as volatile then?
"Markets can remain irrational longer than you can remain solvent"
Re: Has Anyone Bought Zeros Instead?
I believe they are about 1.5 times as volatile as similar duration coupon bonds.
I own a little EDV.
I own a little EDV.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
Re: Has Anyone Bought Zeros Instead?
We have some zeros through American Century's Target Maturity 2025 fund BTTRX. Best held in a tax-deferred account.
As a comparison, today BTTRX went up 1.75%, EDV rose 2.37% and Vanguard's long treasury fund VUSTX went up 1.28%.
John
As a comparison, today BTTRX went up 1.75%, EDV rose 2.37% and Vanguard's long treasury fund VUSTX went up 1.28%.
John
A beautiful thing is never perfect.
Egyptian proverb
Egyptian proverb
Re: Has Anyone Bought Zeros Instead?
And I see TLT, which many seem to favor, went up 1.41%Quasimodo wrote: We have some zeros through American Century's Target Maturity 2025 fund BTTRX. Best held in a tax-deferred account.
As a comparison, today BTTRX went up 1.75%, EDV rose 2.37% and Vanguard's long treasury fund VUSTX went up 1.28%.
"Markets can remain irrational longer than you can remain solvent"