- International diversification for bond allocations is, in theory, an attractive concept, but in practice it’s not working out so great in 2021 for US investors, based on a set of ETFs.
- A key headwind for foreign bonds is the rebound in the US dollar.
- The dollar’s strength is perplexing at a time when the US is working through several challenges, including the risk of a government shutdown and the possibility that the Congress won’t raise the debt ceiling next month, which would result in a default of US Treasuries.
For further details see:
Foreign Bond ETFs Are Having A Tough Year