Everyone seems to be obsessed with risks in the stock market and a potential correction after such a strong run so far in 2013.
However, many investors are unaware of the grave risks that rising interest rates pose to their bond portfolios.
In fact, a survey released Tuesday suggests most investors don’t even realize they’ve already been hurt by the spike in Treasury yields.
According to a survey by Edward Jones, 63% of Americans don’t know how rising interest rates will impact investment portfolios such as 401(k)s, IRAs and other savings platforms.
“In fact, a full 24% say they feel completely in the dark about the potential effects,” Edward Jones said.
The recent rise in interest rates has hurt fixed-income ETFs, especially funds tracking Treasuries with longer durations.
For example, iShares 20+ Year Treasury ETF (NYSEArca: TLT) has fallen nearly 30% from its July 2012 all-time high.