While the fixed 
income ETF market
continues to grow at a record 
pace with over $1 trillion
in global assets,
let's take a step back for 
a fixed income ETF 101.
An education break designed 
to better understand
fixed income ETFs and 
their value to investors.
Fixed income ETFs trade on an
exchange just like a stock.
But they're actually a 
bundle of securities that
create a single tradable fund.
Why are they so popular?
There are many reasons.
But let's focus on 
the top four: ease
of access, pricing transparency, 
liquidity, and lower costs.
First, ease of access.
Buying a fixed income 
ETF is much easier
than buying bonds individually. In the traditional bond market,
you have to negotiate each 
trade with individual dealers.
For diversified bond exposure,
you'd need to make a
lot of these trades.
Fixed income ETFs are
 available on an exchange.
So you get the bond
exposure you want instantly
in a single purchase.
Second, pricing transparency. 
Because fixed income ETFs
are traded on an exchange,
you can follow their price
 throughout the trading day.
So you'll always know the 
price you'll pay for each share.
The third reason is, liquidity.
There are many 
ways for investors
to buy bonds; through individual 
bond dealers, mutual funds,
separately managed accounts,
unit investment trusts, as 
well as fixed income ETFs.
But with fixed income 
ETFs, the exchange
matches buyers and sellers 
throughout the trading day.
So they're just plain
 easier to buy and sell.
Fourth and finally, lower costs.
Fixed income ETFs tend to have 
lower expense ratios compared
to mutual funds, and the minimums 
to invest tend to be lower
And, an ETF can provide diverse 
bond exposure in a single fund,
lowering your acquisition 
and opportunity costs.
So that's the 101 
on fixed income ETFs.
It's easy to see why their 
record growth continues
to drive investor interest. To 
learn even more about fixed
income ETFs, and how to use them
 to meet your investing goals,
 visit us.
