Fixed-income exchange traded funds (ETFs) are allowing investors easy access to areas of the bond market. The easier route isn’t always better, as there is plenty of room for trouble. Bond investors have felt the turbulence of the subprime meltdown, as the prices of some risky bonds have dropped along with mortgage-backed securities. Eleanore Laise for The Wall Street Journal reports that dozens of new bond ETFs have launched this year, and some focus on emerging-market debt or "junk" bonds. One example of such an ETF is the iShares iBoxx $ High Yield Corporate Bond (HYG), which is generally more appropriate for investors with a high risk tolerance. High-quality bonds tend to be the diversified and safer route. A couple to look into include:

• SPDR Lehman 1-3 Month T-Bill (BIL)
• SPDR Lehman Long Term Treasury (TLO)

Tags: Bond ETFs