Unlike mutual funds, the ETFs may be traded intraday like regular stocks, which also allows investors to trade ETFs in margin accounts. Bonds are typically held for an extended period and the intra-day tradability may not necessarily be a main selling point, but it is still nice to have. Stop-orders may be placed on ETF trades to help hedge against unwanted market exposure, Shaw writes.
SPDR Barclays High Yield Bond
For more information on high-yield bonds, visit our high-yield bonds category.
Max Chen contributed to this article.