Definition
Bond ETFs hold diversified portfolios of fixed-income securities and trade on exchanges like stocks. They provide easy access to bond markets with benefits including liquidity, transparency, low costs, and diversification. Types include Treasury, corporate, municipal, and international bond ETFs.
Example
AGG (iShares Core U.S. Aggregate Bond ETF) holds thousands of bonds, providing broad fixed-income exposure in a single trade.
FAQ
What is Bond ETF?
An exchange-traded fund that invests in a portfolio of bonds.
Why is Bond ETF important?
Bond ETF helps investors evaluate fixed income and make more informed decisions.