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There are 5 names in this directory beginning with the letter B.
Basis Points
Basis points, also known as bps or “bps” are units of measure commonly used to describe percentage changes in interest rates and yields on bonds, and changes in equity indexes. 1 bps( basis points) is identified as .01%, which means that 100bps is identified as 1%. For example, in context of bonds if a bond yield is 5% and it increases by 200 bps, the yield increases by 2%. Therefore, the resulting bond yields 7%. Watch Video

 

Bear Market
A Bear market occurs when the price of an index falls at least 20% or more from its 52-week high. Bear markets are often occupied by negative investor sentiment of the market and can be cyclical, lasting several months or lasting several years.

While bear markets are usually measured by broad market indexes such as the S&P 500, the NASDAQ Composite, or the Dow Jones Industrial Average, they can occur in any asset class. For example, the Dow Jones Industrial Average index recently entered the bear market in March 2020 when it fell to 23,553.22, which was a fall for more than 20% from its most recent 52-week high of 29,551.42. Watch Video

 

Benchmark
A benchmark is a standard against which investment managers measure the relative performance of their portfolio or fund. Generally, the most commonly used benchmarks are broad market stocks indexes and bond indexes. Watch Video

 

Beta
Beta is a measure of the volatility of a security or portfolio in comparison to the whole market. It is a component of the capital asset pricing model (CAPM) model and is often used by investment managers to show the systemic risk of the portfolio or security arising from market movements.
In theory, the market portfolio of all available assets has a beta of 1. Therefore, a security with a beta below 1 can indicate that the security either has lower volatility than the market or has prices that are uncorrelated with market price movements. A security with a beta above 1 indicates that the security either has higher volatility than the market or has prices that are very correlated with market price movements. Therefore, securities with a beta less than 1.0 (such as treasury bills) are considered less risky but have a lower return, as compared to securities with a beta greater than 1.0 (such as growth stocks) that are riskier and have a higher expected return. Watch Video

 

Bond ETFs
Bond ETFs are ETFs that exclusively invest in bonds. However, the bonds in the portfolio can have many different strategies, investment grades, holding periods, and industry exposures. They provide investors the opportunity to gain exposure to the bond market at a generally lower price and liquidity and transparency of the stock market. Most bond ETFs pay money through interest payment from bonds which they pay to investors through monthly dividend payment. Watch Video