The Benefits of Bond ETFs

Rafaela Pita

Co-Presenters: Alessandro Dileo, Nicholas Cheung

College: College of Business and Public Management

Major: Finance

Faculty Research Mentor: Bo Wang

Abstract:

Bond Exchange Traded Funds (ETFs) is a passively managed investment that offers investors a diversified, cost-effective, and liquid way to obtain exposure to fixed-income markets. This presentation aims to present the key advantages of investing in Bond ETFs, the diversification across various bond types, the accessibility of liquidity, and real-time trading flexibility. Additionally, bond ETFs provided tax efficiency and provided transparent pricing. By analyzing their structure, risks, and performance in proportion to individual bonds and mutual funds, this presentation will demonstrate why bond ETFs have gained popularity among investors. Understanding these benefits will help investors make informed decisions when building balanced portfolios.