ETF Bond Type: Corporate Bonds

Exchange-traded funds (ETFs) that invest in corporate bonds offer investors the ability to diversify and add maximum stability to a portfolio. The exposure to a broad group of bond issuers reduces risk associated with concentration on a single issuer. This type of ETF comprises a basket of various corporate bond types such as investment grade, high yield and convertible debt instruments, presenting exposure to many bond investors who would not typically have access or the ability to purchase individual corporate bonds. Corporate bond ETFs provide an efficient way for investors to achieve specific goals, depending on their own portfolios. With the added benefit of liquidity and low costs, ETFs are becoming an essential part of any strategy with bond investments.