Is there a standard method for estimating the sensitivity of a bond ETF's price to interest rate changes? Some of the information I have includes the average duration and the SEC yield.

1 Answer 1


Duration is the time weighted average maturity, more or less.

The value of the ETF will drop as a function of the duration times the change in rates. For example, if the duration is 8 years, a .1% increase in rates will cause a drop of .8%.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.