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I think a larger problem with bond and loan ETFs is equity-like liquidity for an underlyer that is inherently illiquid. A lot of these are unproven in times of
by whatok 11y ago
I think a larger problem with bond and loan ETFs is equity-like liquidity for an underlyer that is inherently illiquid. A lot of these are unproven in times of market stress and bad things can happen very quickly with how the market is right now.
Don't necessarily agree with your assessment on rates but yeah hard to get excited about bonds right now.
- marko2525 11y agoThis is totally true. The problem is that because bonds don't trade often, it's hard to make an index ETF based on them. You're basically asking something to be revalued multiple times a day when the holdings might get their price updated (via a trade) once a week or even once every month.