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Scottsdale Wealth Planning

June 1, 2021 By Paul Ohanian

Fixed Income FAQ: On Investing Amid Negative Interest Rates

Negative interest rates may not translate into a negative return experience for investors. A fixed income strategy that considers currency hedging and different yield curves across the globe can position for positive expected returns versus a domestic-only strategy.

“We’ve had positive total returns because when you think about the return of a bond, there’s more than just the interest rate.”


Featuring Dimensional Fund Advisors VPs, Doug Longo, Head of Fixed Income Portfolio Strategists, Joseph Kolerich, Head of Fixed Income, Americas, and Jake DeKinder, Head of Client Communications.


DISCLOSURES

The information in this document is provided in good faith without any warranty and is intended for the recipient’s background information only. It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorized copying, reproducing, duplicating, or transmitting of this document are strictly prohibited. Dimensional accepts no responsibility for loss arising from the use of the information contained herein.

“Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., Dimensional Ireland Limited, DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., Dimensional Japan Ltd., and Dimensional Hong Kong Limited. Dimensional Hong Kong Limited is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services.

UNITED STATES: Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

RISKS
Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.

Filed Under: Dimensional Funds, Fixed Income, Investment Principles, Video Tagged With: Dimensional Funds, Fixed Income, video

Note: Paul Ohanian, CFP®, Scottsdale Wealth Planning, Inc., ("Advisor") is a registered investment advisor. Information contained in this website is for informational purposes only and should not be considered investment advice. Advice may only be provided after entering into an advisory agreement with Advisor. Information is at a period in time and subject to change. Our current Disclosure Brochure is set forth on Form ADV Part 2 and is available for your review upon request.

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