Passive Bond ETFs Simplify Fixed Income Investing for Hands-Off Investors
Fixed income investing, traditionally complex due to the opaque nature of individual bond trading, has been streamlined by passive Exchange Traded Funds (ETFs). These instruments track broad indices at minimal costs, offering market stability, predictable income, and superior liquidity.
The curated list highlights seven essential passive bond ETF categories, each serving a distinct strategic role in a diversified portfolio. Vanguard Total Bond Market ETF (BND) anchors the portfolio with broad U.S. investment-grade exposure, while iShares 0-3 Month Treasury Bond ETF (SGOV) provides ultra-short duration safety. For those betting on falling interest rates, iShares 20+ Year Treasury Bond ETF (TLT) offers high volatility exposure. Global diversification is achieved through Vanguard Total International Bond ETF (BNDX), reducing reliance on U.S. credit markets.