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Why Bond Ladder ETFs Are All the Rage

Why Bond Ladder ETFs Are All the Rage

Everyone knows ladders are better than chutes.

Invesco last week introduced its latest suite of BulletShares Treasury bond ETFs, which expand its existing fixed-income lineup. The strategies use a method called laddering, in which a fund holds bonds maturing in specific calendar years so that as they mature, yields are invested back into other bonds with later payout dates. The popularity of these so-called defined maturity ETFs is growing as rising interest rates correlate with falling bond prices and investors seek safety amid macroeconomic and geopolitical turmoil.

With disruptions from tariffs and trade wars to the shutdown of the Strait of Hormuz and the impact of AI on the economy, “when you can buy a diversified portfolio…

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