How do I pick a fixed-income ETF?

The process for picking a fixed-income ETF is similar to picking any other asset class. First, you’ll need to determine your targeted exposure—the type of bonds you’re interested in. Next, you’ll need to consider the credit ratings and interest-rate risk of the ETF’s underlying securities. Exposure Categories

What is a fixed-income ETF?

Like equity ETFs, fixed-income ETFs offer exposure to a basket of securities that, in this case, is a basket of bonds. Fixed-income ETFs target all corners of the market, from speculative emerging market debt to top-notch U.S. government debt. The process for picking a fixed-income ETF is similar to picking any other asset class.

What are fixed income securities?

Fixed income securities are a mainstay of investor portfolios. Fixed-income securities are a mainstay of investor portfolios. While they come in many shapes and sizes, bonds and other fixed-income securities are simple in principle—they're loans from the investing public to an institution that needs money.