MATTHEW TUCKER, CFA
Fixed income exchange traded funds (ETFs) are a hybrid investment vehicle. Like a traditional mutual fund, a fixed income ETF is advised by an asset management firm that manages and rebalances the portfolio in accordance with stated investment guidelines. And like an exchange traded futures contract, a fixed income ETF provides investors with exposure that can be traded throughout the day on an exchange.
Fixed income ETFs possess three key attributes:
• Exchange listing provides transparent, intraday liquidity. This is in stark contrast to the underlying over-the-counter (OTC) bond market, which can be less transparent ...