MutualFundWire.com: Is It a Bond or Is It an ETF?
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Thursday, October 4, 2012

Is It a Bond or Is It an ETF?


Investors are taking a shine to a burgeoning category of exchange-traded funds that are designed to act more like individual bonds with a set maturity, according to the Wall Street Journal.

These products are called defined-maturity ETFs. According to the WSJ, they seek to combine the diversification of a bond fund with the fixed term of an individual bond. A fund with the year 2015 in its name, for instance, will hold bonds that mature in that year—and it will liquidate by the end of that year.

Both BlackRock and Guggenheim are looking at expanding their lineups of fixed-maturity funds.

To read more on these funds, read the Wall Street Journal article.


Printed from: MFWire.com/story.asp?s=41504

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