The easy access of an ETF is another attraction to these fixed income tools. Most investors prefer an ETF or mutual fund to a direct investment into a single bond. [High Yield Bond Investors Have More ETF Options]
“You could get a handful of bonds or you could buy an ETF that gives you very broad diversified access to the whole category—depending on the segment you’re buying you’re talking about hundreds of securities. So this makes it easy and efficient to trade fixed income,” Mary Anne Wiley, managing director and head of iShares for BlackRock Canada said.
Since investors need a bond investment in their portfolios, during a high or low yield environment, fixed income ETFs will continue their growth trend. The steady income stream, instant diversification, cost efficiency and simplicity are traits that are appealing no matter what country an investor is in.
Tisha Guerrero contributed to this article.