xWHAT ARE BOND ETFs?
Like bond mutual funds, bond ETFs provide exposure to bonds by tracking
indexes with fixed duration. In other words, bond indexes contain bonds with
various maturity dates, managed so that the entire index has a fixed average
maturity. If projected interest rates rise, the price of a bond ETF falls.
Broad bond ETFs contain a mixture of government (also known as "Treasury")
and corporate (also known as "credit") bonds. The corporate bonds in these index
ETFs generally have high credit ratings.