Fixed-Income ETFs: Over 60 ETFs Enable Portfolios of Bonds to Be Traded Like Stocks

Over the past year, a significant amount of ETF issuance and net cash flow growth has focused on the fixed income markets. There are now over 60 U.S.-listed ETFs that, combined, have over $43 billion in assets. ETFs may provide several advantages over buying individual bonds, mutual funds, or other investments that provide fixed income exposure. These include low expense ratios, tight bid-ask spreads, and the competitive returns of fixed income indices versus active management. Many investors may find fixed income ETFs attractive as core holdings, or for implementing asset allocation models. Others may use them for more aggressive trading strategies, yield curve plays, or duration management.