Business · Markets · 2 days ago

Fixed-term bond ETFs can provide regular interest payments

Fixed-term bond ETFs can provide regular interest payments

Bond ETFs let people invest in many company bonds through one fund.

Fixed-term versions have a set end date, when the bonds are due to be repaid if the borrowers remain solvent.

That can make income easier to plan than with ordinary bond funds, whose prices keep changing.

But investors still face risks, including borrowers failing to repay.

Sources

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