A couple of months ago I put some money into FNBGX, Fidelity Long Term Treasury Index Fund. Previously I was 100% TSM and wanted to diversify.
The last 2 months, FNBGX has taken a beating because inflation hasn’t cooled and talks of possible rate hikes instead of cuts. It’s been hard to watch, but I haven’t panic sold.
My question is, even though the NAV may be down 4% since I bought into it, this isn’t necessarily a bad thing as I understand it because I am in fact making more dividends from the fund as treasury yields go up, correct?
The last 2 months, FNBGX has taken a beating because inflation hasn’t cooled and talks of possible rate hikes instead of cuts. It’s been hard to watch, but I haven’t panic sold.
My question is, even though the NAV may be down 4% since I bought into it, this isn’t necessarily a bad thing as I understand it because I am in fact making more dividends from the fund as treasury yields go up, correct?
Statistics: Posted by BBailey — Tue Apr 16, 2024 12:35 pm — Replies 15 — Views 589