Bond exchange traded funds (ETFs) can be a solid way to take the hassle out of buying individual bonds, which can be costly and time-consuming for individual investors.
Heather Bell for Index Universe sat down with Ron Ryan, CEO and found of Ryan ALM Inc., an asset management firm. Ryan has been developing fixed-income indexes for years.
Ryan says bond ETFs are like having an instant portfolio in a single fund.
Short duration funds have a relationship with short-term rates, and with the Federal Reserve guiding those rates, short-term rates are at very low levels. Today’s yields are around .50 % from the lowest yields in modern history.