FYI: Money has poured into bond ETFs this year, amid uncertainty about the direction of stocks. A net $75.2 billion flowed into bond funds listed on U.S. exchanges in the first half of the year, compared with $56.5 billion for U.S.-listed equity ETFs, according to news and analysis site ETF.com.
The case for most bond ETFs is simple. “Concerns about the global political and economic situation have helped drive assets into bond ETFs this year,” says Deborah Fuhr, managing partner and founder of London-based research firm ETFGI. Fixed-income assets generally serve in investment portfolios to counterbalance the volatility and risk common to stocks, especially in uncertain times.
But while the reason to buy bond ETFs may be simple, the market is less so. Investors have a multitude of choices. And while bond funds can help offset the risk of stocks, many carry substantial risks of their own. Here’s a broad look at what the market has to offer and a guide to the defining characteristics of a given bond ETF.
Regards,
Ted
https://www.wsj.com/articles/what-investors-need-to-know-about-bond-etfs-11562638320?mod=md_mf_news
