Elwood Blues

How Safe are Bond ETFs?

I got stopped out of AGG at the very bottom of that spike down in October. Lessons learned: during a period of high volatility like we went through, cash is king. Having a stop loss on a bond fund when the mkt seized up was not a smart move. Bond ETFs are less stable than bond mutual funds since the ETFs rely on the market makers, which have now proved they are unreliable.