Comment on Mamdani Promises: “We’ll Divest From Israel, Ease Crackdown on Pro-Pales
lmmarsano@lemmynsfw.com 2 days agoIsraeli bonds
S&P 500 ETF
Entirely different asset classes: fixed income vs equity.
Fixed income is for lower risk & volatility with a more predictable (typically lower) rate of return.
Nonetheless, 5% return on bonds is hardly exceptional, and comparable alternatives exist in that asset class.
lmdnw@lemmy.world 2 days ago
Thank you for the clarification. So are Israeli bonds the same as a US Treasury bond? Basically just the investor funding the government that the bond is for at that nation’s treasury rate as opposed to the ETF, which is based on market conditions?
lmmarsano@lemmynsfw.com 2 days ago
Though I’m no expert, they’re in the same asset class or similar classes. Their investment portfolio may likely include US Treasury bonds, and common financial advice is to diversify by including a mix of other bonds.
The rest you wrote seems about right.