Investing in Fixed Income ETFs

Listen to The ETF Store Show every Saturday at 4pm on KCMO Talk Radio 710AM as we cover everything you need to know about Exchange Traded Funds and the world of investing. On our most recent radio show, we delved into an area of investing that some people may find intimidating – investing in bonds (or fixed income).  Our experience is that many people understand what a bond is, but they may not know exactly where to begin when deciding which bonds to invest in.  During our broadcast, we discussed the current bond market in general and more importantly, why investors should strongly consider ETFs for the fixed income portion of their portfolio instead of trying to select individuals bonds or use actively managed fixed income mutual funds.  Using either of the latter two options is typically a recipe for underperformance. Passively managed funds like ETFs, which track bond indexes like the Barclays Capital US Aggregate Bond Index, can be significantly cheaper than actively managed mutual funds and avoid the risk of manager underperformance.  Gaining broad fixed income exposure very inexpensively, while minimizing the risk of manager underperformance, is the winning combination that we look for at The ETF Store.  We also discussed some specific bond ETFs that you can consider for your portfolio including BND, TIP, MUB, and PCY.  Listen to the full show here to learn more about investing in fixed income ETFs.