The ETF has been one of the great advances in fund innovation. In 2019, the ETF rule’s arrival streamlined the launch process for ETFs. In turn, the ETF ecosystem has blossomed. That has helped firms like Northern Trust innovate and release powerful strategies within the ETF wrapper. The firm launched its suite of bond ladder ETFs in 2025, for example, packaging an increasingly popular approach to bonds in the ETF’s tax efficient, flexible wrapper.
ETFs set themselves apart from mutual funds thanks to their easy tradability, transparency, and tax efficiency. That has helped asset managers offer ETFs that can serve as goal-oriented tools to deliver on investors’ overall plans.
Bond ladder ETFs differ from other bond funds and ETFs by adopting a different investment strategy. Where other fixed income strategies ladder bonds by taking the principal from one bond and putting it straight into another, Northern Trust’s bond ladder ETFs are different.
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They help investors target specific goals by returning the principal to them annually, following regular income payouts during the year. That can help investors achieve a wide range of goals, from paying college tuition to handling retirement to making a charitable payout.
Investors can use these ETFs for a fixed amount of time to meet their goal, with the funds targeting different time frames. The suite includes five-, 10-, 20-, and 30-year funds.
Where at times, investors have tried to create bond ladders of their own to meet their goals, bond ladder ETFs package an entire time frame and schedule within a given ETF. As such, those funds can work for advisors and for individual investors alike, given the ETF’s easy tradability. In the future, the ETF may empower further bond ladder strategies — with Northern Trust a firm to watch therein.
For more news, information, and strategy, visit the Bond Ladders Content Hub.
Disclosures:
ETF investing involves risk and principal loss is possible. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns. The net asset value of the Northern Trust ETFs will decline over time as income payments are made to shareholders. Individual bonds carry an obligation to fully return principal to investors at maturity, however ETFs have no such obligation.
Before investing, carefully consider the investment objectives, risks, charges, and expenses. This and other information is in the prospectus and a summary prospectus, copies of which may be obtained by visiting www.flexshares.com. Read the prospectus carefully before you invest.
Northern Funds Distributors, LLC, distributor. Northern Funds Distributors, LLC and FlexShares are not affiliated with Northern Trust.
All investments are subject to investment risk, including the possible loss of principal amount invested. Investments do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Not FDIC insured | May lose value | No bank guarantee
