In the News: Morningstar

Morningstar conference: Currencies contrasted with investing in bond funds

Morningstar Alternative Investment Strategist Nadia Papagiannis summarizes portfolio manager Axel Merk's presentation at Morningstar's ETF conference: "

Part II: Currencies contrasted with investing in bond funds

Instead of stocks, one could buy international bonds to achieve international currency exposure, but investors in this case are taking on duration risk, typically at the long-end of the yield curve. Long-dated government bonds have historically seen much more risk than a normal distribution would suggest, even without sovereign credit risk, which is now a concern to investors.