Some Bond Funds Grow Their Capital Bases, Some Do Not
How the industry's 1999 bond-fund leaders have since performed.
Testing the Results
All things being equal, when interest rates fall, the prices of bonds--and thus of bond funds--rise. Such is the math of fixed-income investing. One would think, therefore, that the net asset values of the top bond funds from 20 years ago would now be comfortably higher than when the new millennium arrived.
John Rekenthaler has a position in the following securities mentioned above: PTTAX, VBTIX. Find out about Morningstar’s editorial policies.