Long-Term Vs. Short-Term: Which Of These Monthly-Paying Corporate Bond ETFs Is Right For You?
Unlike government bonds, corporate bonds have one major advantage: they offer strong returns.
When investing in corporate bonds, there are many variables an investor should consider such as credit risk, interest rates, Federal Reserve policy, and the size of their position. Additionally, there are many types of bonds to consider such as short-term, medium-term and long-term bonds which have maturities ranging from five years or less, five to twelve years, and more than twelve years, respectively.
This is why some investors may prefer to invest in actively managed exchange-traded funds that seek to invest in the maturities of their preferences.
See Also: 3 Reasons To Invest In Treasury ETF
