ETF Bond Duration: Long-Term

ETFs, or exchange-traded funds, are a type of investment fund that trades on a stock exchange. ETFs typically track a certain index, such as the S&P 500, or a specific sector or asset class. Bond ETFs, as the name implies, invest in bonds. These can be short-term bonds, which mature in one to three years, or long-term bonds, which have a maturity of ten years or more. Long-term bond ETFs tend to be less volatile than short-term bond ETFs and other types of ETFs. This is because the underlying bonds have a longer duration, meaning they are less sensitive to changes in interest rates. As a result, long-term bond ETFs can provide investors with stability and income during periods of market uncertainty.