ETF sponsors have wrapped all sorts of exotic assets into exchange traded funds, yet the asset class most ignored is bonds.  Seeking Alpha reported bonds play an essential role in diversification and income generation.

While bond ETFs provide steady income, they are more risky in an environment of rising interest rates.  If the Federal Reserve should start to lower interest rates, then it might be a good time to look at bond ETFs, but remember to have a stop-loss on them as with any other purchase.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.