Bond ETF
An exchange-traded fund that holds a portfolio of bonds, typically tracking an index (total bond market, intermediate Treasuries, investment-grade corporates, high yield, municipals, etc.). Bond ETFs trade intraday on stock exchanges with tight bid-ask spreads, offer broad diversification in a single ticker, and have no maturity date -- the fund continuously rolls bonds to maintain a target duration. The trade-off versus individual bonds is the absence of a defined maturity date that returns face value, which matters most for cash-flow-dated needs.
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Related terms
10Y Treasury · Altman Z-Score · Asset Sensitivity · Basel III · Bretton Woods · Bullet vs Barbell
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