ETF Bond Type: Target Maturity Date Junk Bond
ETFs, or exchange-traded funds, are a type of investment fund that trade on stock exchanges, like stocks. ETFs provide investors with exposure to a wide variety of asset classes, including stocks, bonds, commodities, and foreign currencies. Target maturity date junk bond ETFs are a type of ETF that invests in junk bonds with a target maturity date. Junk bonds are debt securities with a higher risk of default than investment-grade bonds. They typically offer higher yields than investment-grade bonds but are also more volatile. Target maturity date ETFs are designed to provide investors with exposure to junk bonds while minimizing the risk of defaults by holding only bonds that mature within a certain timeframe. This type of ETF can be a good choice for investors who want to invest in junk bonds but who are concerned about the risks associated with these securities.