Bond ETFs for Income at a Low Cost

Tracking a bond index can be more complicated than following a stock market, but demand for fixed income ETFs is growing rapidly, not least because of their low charges

Jose Garcia Zarate 14 November, 2019 | 1:07PM

bonds

The popularity of passive investing continues apace and one of the key areas of growth is fixed income. Inflows into bond ETFs and index funds in the first nine months of 2019 amounted to around £55.7 billion, more than doubling the new money allocated to equity passive funds.

In the choice between exchange-traded funds (ETFs) and traditional index funds the ETF wrapper is streets ahead, having captured around two-thirds of the new money into passive bond funds.

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About Author

Jose Garcia Zarate

Jose Garcia Zarate  is Associate Director of Passive Strategies Research for Morningstar Europe

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