Baby boomers are approaching retirement and many are looking into the bond market and bond exchange traded funds (ETFs). The fixed-income market has been hard to dissect and fund strategies are complex, yet the bond market has become ever important to the small investor, reports Eleanore Laise of The Wall Street Journal. A new set of benchmarks is launching in an attempt to give investors a better understanding of the bond market.
Investment research firm Morningstar will offer 14 bond indexes that will allow investors to slice and dice the bond market. The indexes included will track short, intermediate and long term bonds in various sectors and include government, corporate and mortgage bonds as well as the overall U.S. bond market.
With more fixed-income indexes available, will this mean more ETF providers will work to launch ETFs to track them? Time will tell, but with a relatively small number of fixed-income ETFs currently available, it is possible.
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