Bond ETF

Bond ETFs are exchange-traded funds that invest in bonds. They allow investors to gain exposure to a basket of bonds through regulated and centralised exchanges. Unlike individual Bonds which are traded over the counter by bond brokers, they offer a higher liquidity and transparency particularly in periods of market stress. There are a variety of Bond ETF allowing investors to choose specific market segments such as sovereign bond, corporate bonds or a specific region like US Europe, Emerging market. They allow investors to select high yielding or investment grade bonds.