Convexity

A measure of the change in a security?s duration with respect to changes in interest rates. The more convex a security is, the more its duration will change with interest rate changes.

Remarks: Bond funds including mutual funds (open-end and closed-end, actively managed and indexed), exchange-traded funds and unit investment trusts offer a convenient and affordable way to invest in a diversified portfolio of bonds, but a bond fund investment can differ from a bond investment in ways that are important to understand.