FYI: (Click On Article Title At Top Of Google Search)
Bond indexes are problematic, making ETFs based on them problematic. How to improve performance.
Talk with Kevin Flanagan, and you’ll soon realize how poorly designed the average bond-index exchange-traded fund is.
“Most of the popular index funds weight the bonds in their portfolios based on their market capitalizations,” says the WisdomTree Investments fixed-income strategist. “What that means is that the more debt a company issues, the higher weight it gets in the index. To me, that’s very counterintuitive.
Regards,
Ted
https://www.google.com/#q=Building+a+Better+Bond+ETF+Barron's
