ETF Bond Type: International Treasury
ETFs, or exchange-traded funds, are a type of investment vehicle that allows investors to trade a basket of securities on an exchange. ETFs typically track an index, but they can also track a commodity, currency, or basket of assets. One type of ETF is the international treasury bond ETF. As the name suggests, these ETFs invest in international treasury bonds. Treasury bonds are debt instruments issued by governments to raise capital. They typically have a term of 10 years or more and pay periodic interest payments called coupons. International treasury bond ETFs provide exposure to the global bond market and can be used to hedge against inflation or interest rate risk. ETFs are easy to trade and offer a cost-effective way to gain exposure to the bond market.