A measure of the expected volatility of a bond fund in response to interest rate fluctuations. The time to maturity impacts the sensitivity of any given bond. For example, the effects of a shift in interest rates would be five times greater for a 10 year treasury bond than a 2 year treasury bond. As interest rates go up, the duration shortens and the bond is expected to decrease in price. With bond funds, the effective duration for many bonds with different maturity dates and yields within the fund is averaged.
Related information about average effective duration:
- Average Effective Duration - Morningstar
Average Effective Duration - Definition for Average Effective Duration from Morningstar -Average effective duration provides a measure of a fund's interest- rate ...
- Average Effective Duration
Average Effective Duration. A measure of a fund's interest-rate sensitivity—the longer a fund's duration, the more sensitive the fund is to shifts in interest rates.
- What is average effective duration? definition and meaning
Definition of average effective duration: A measure of the expected volatility of a bond fund in response to interest rate fluctuations. The time to maturity impacts ...
- How to Calculate Effective Duration | eHow.com
Calculating Weighted Average Effective Duration for a Portfolio. 8. Calculate the effective duration for each bond in the portfolio. 9. Find the portfolio weight of ...
- Effective duration - Financial Dictionary - The Free Dictionary
31, 2008, the pool's weighted average effective duration stood at 0. Fitch Affirms San Bernardino County Investment Pool at 'AAA/V1+' by Business Wire ...
- Reducing Risk With Bond ETFs By Paying Attention To Duration ...
Feb 8, 2012 ... The formula for calculating duration is complicated, but issuers of bond ETFs publish an "average effective duration" for all their offerings, and ...
- Franklin Low Duration Total Return Fund - Franklin Templeton
For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's ...
- Baird Intermediate Bond Fund - Robert W. Baird
0.0%. Cash. 0.8%. 0.0%. Average Effective Duration. 3.92 Years. Average Effective Maturity. 4.51 Years. Annual Turnover Rate. 42.1%. Number of Holdings . 354 ...