VWEHX ... why is it drastically underperforming the last 2 months?

BigBiceps · #1 07-20-2007, 05:32 PM

VWEHX ... why is it drastically underperforming the last 2 months?

Have corporate bonds been defaulting or something?

http://finance.yahoo.com/q?s=VWEHX

hawk59 · #2 07-20-2007, 06:28 PM

Credit spreads have widened, and rates in general are up.

BigBiceps · #3 07-20-2007, 10:49 PM

Yah but the 10 year is back below 5% and all other bond funds are doing ok.

It has a pretty good negative correlation with the 10 year yield, and for example today, the fund went down .02 while the 10 year yield also went down .07, which should be just the opposite.

Is it particular credit risk of some of the corporate bonds?