Why this investment expert says bond ETFs could be a good strategy
BlackRock global head of ETFs and index investments Salim Ramji discusses the popularity of ETFs after 2022 became the second best year for the investment vehicle on 'The Claman Countdown.'"Bond ETFs hold bonds within an exchange-traded fund wrapper, which trades like a stock," says Roxanna Islam, associate director of research with VettiFi. "Compared tobond ETFs are more liquid, transparent, and provide more frequent income.
In addition, Islam says many investors are more comfortable with equity investments over fixed-income investments due to simplicity and familiarity. "So putting bonds in an ETF wrapper allows fixed income investments to be more accessible to investors who are reluctant to buy bonds directly," Islam tells FOX Business.Bryan Armour, Morningstar's director of passive strategies research for North America, says bond funds – regardless of mutual fund or ETF – are a great way to diversify bond exposure to reduce risks inherent to any one issuer .
"Investors can lean on professional management of funds, regardless of whether it's active or passive," Armour tells FOX Business. "The alternative would be investors running their own strategy by purchasing bonds and reinvesting each time they came due. This approach carries little benefit for the investor given the extremely low fees of passive, broadly diversified bond funds.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
HN Editor Picks: Top Tech Stories of March 2023 | HackerNoonTake a look at all the best HackerNoon stories, handpicked for your reading pleasure and education on trending tech topics. - by hackernoon tech techstories
Read more »
Bitcoin market cap grows 60% in 2023 as top Wall Street banks lose $100BBitcoin is proving to be a dependable safe haven years after the Cypriot and Greece banking crisis.
Read more »
Spring arts preview 2023: Our top 10 visual art picks for the seasonFrom Georgia O’Keeffe to annual art and photography festivals, there will be plenty to do and view this spring
Read more »
Top new landscaping trends for 2023It's never too early to give thought to your home's curb appeal and the condition and cosmetic appeal of your yard and grounds. If you want to be prouder of the home you own and catch the eye of visitors and passersby, it pays to devote extra focus to landscaping improvements in 2023.
Read more »
Pearson drops to 64th best airport in 2023 Top 100 global rankingsToronto’s Pearson International Airport has dropped significantly when it comes to the rankings of the world’s Top 100 Airports.
Read more »
March Madness 2023: Breaking down Saturday’s can’t-miss gamesHere are Saturday’s key March Madness 2023 games to watch:
Read more »